Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) today announced the sale of
its Iroquois Falls and Kingston efficient natural gas-fired
generating facilities (the “facilities”), both located in Ontario,
to Validus Power Corp. The two facilities have a combined operating
capacity of 230 megawatts (MW). The proceeds from the sale will
provide Northland with additional liquidity to help fund the
development capital required for its long-term growth objectives.
About Iroquois Falls and Kingston
Facilities:
- Iroquois
Falls is a 120 MW natural-gas-fired combined-cycle generating
facility that achieved commercial operations in 1997 and operated
under a 25-year Power Purchase Agreement (PPA) with the Ontario
System Operator that expired at the end of 2021.
- Kingston is a
110 MW natural-gas-fired combined-cycle generating facility that
was also commissioned in 1997 and had operated under a 20-year PPA
with the Ontario System Operator, which expired in
2017.
Northland’s efficient natural gas-fired
generation assets played a role in decarbonizing Canada’s energy
grid and helping to diversify the country’s energy mix away from
coal. As Northland evolves, its strategic focus shifts to seizing
opportunities within renewables to support global decarbonization
efforts and to generate positive financial returns for
shareholders. As the Company focuses on building out its portfolio
of renewable projects, it has no plans to make new investments in
efficient natural gas assets. The sale of these two facilities
aligns with Northland’s growth and sustainability strategy. As a
result of this transaction, employees from Iroquois Falls and
Kingston facilities will either join the purchasing company or be
repositioned within Northland.
“As a global developer focused on advancing the
development of renewable energy, the sale of the Iroquois Falls and
Kingston facilities aligns with this strategy,” said Mike Crawley,
Northland’s President and Chief Executive Officer. “Northland’s
future growth will come from offshore wind, onshore renewables and
other decarbonizing assets and our focus has been on these asset
classes. This transaction marks an important step in the evolution
of our business, representing a 21% reduction in our gas-fired
generation capacity and further supports our efforts to reduce
Northland’s carbon intensity. I want to acknowledge and thank the
employees at these facilities for their contributions to
Northland’s success and wish them all the best.”
The sale aligns with Northland’s ESG objectives
by helping to support:
-
Carbon reduction targets through a reduction in efficient natural
gas-fired generation by 230 MW from 973 MW to 743 MW
-
Helping the company achieve its stated 2030 targets
-
Global decarbonization efforts of countries in which the Company
operates by utilizing proceeds received to re-invest in significant
green energy / renewable projects
ABOUT NORTHLAND POWER
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables,
efficient natural gas energy, as well as supplying energy through a
regulated utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in 3.2 GW (net 2.8 GW) of operating capacity. The Company
also has a significant inventory of projects in construction and in
various stages of development encompassing over 14 GW of potential
capacity.
Publicly traded since 1997, Northland's common shares, Series 1,
Series 2 and Series 3 preferred shares trade on the Toronto Stock
Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B and NPI.PR.C,
respectively.
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements including certain future oriented
financial information that are provided for the purpose of
presenting information about management’s current expectations and
plans. Readers are cautioned that such statements may not be
appropriate for other purposes. Northland’s actual results could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, the events anticipated
by the forward-looking statements may or may not transpire or
occur. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as “expects,” “anticipates,”
“plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,”
“projects,” “forecasts” or negative versions thereof and other
similar expressions or future or conditional verbs such as “may,”
“will,” “should,” “would” and “could.” These statements may
include, without limitation, statements regarding Northland’s
expectations for future expected adjusted EBITDA, Free Cash Flows
(and as adjusted) and per share amounts, guidance, the completion
of construction, attainment of commercial operations, the potential
for future production from project pipelines, cost and output of
development projects, litigation claims, plans for raising capital,
and the future operations, business, financial condition, financial
results, priorities, ongoing objectives, strategies and outlook of
Northland and its subsidiaries. These statements are based upon
certain material factors or assumptions that were applied in
developing the forward-looking statements, including the design
specifications of development projects, the provisions of contracts
to which Northland or a subsidiary is a party, management’s current
plans and its perception of historical trends, current conditions
and expected future developments, as well as other factors that are
believed to be appropriate in the circumstances. Although these
forward-looking statements are based upon management’s current
reasonable expectations and assumptions, they are subject to
numerous risks and uncertainties. Some of the factors that could
cause results or events to differ from current expectations
include, but are not limited to, risks associated with revenue
contracts, impact of COVID-19 pandemic, Northland’s reliance on the
performance of its offshore wind facilities at Gemini, Nordsee One
and Deutsche Bucht for approximately 60% of its Adjusted EBITDA and
Free Cash Flow, counterparty risks, contractual operating
performance, variability of revenue from generating facilities
powered by intermittent renewable resources, offshore wind
concentration, natural gas and power market risks, operational
risks, recovery of utility operating costs, permitting,
construction risks, project development risks, acquisition risks,
financing risks, interest rate and refinancing risks, liquidity
risk, credit rating risk, currency fluctuation risk, variability of
cash flow and potential impact on dividends, taxation, natural
events, environmental risks, health and worker safety risks, market
compliance risk, government regulations and policy risks, utility
rate regulation risks, international activities, reliance on
information technology, labour relations, reputational risk,
insurance risk, risks relating to co-ownership, bribery and
corruption risk, legal contingencies, and the other factors
described in the “Risks Factors” section of Northland’s 2021 Annual
Information Form, which can be found at www.sedar.com under
Northland’s profile and on Northland’s website at
northlandpower.com. Northland’s actual results could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur.
The forward-looking statements contained in this
release are based on assumptions that were considered reasonable as
of the date hereof. Other than as specifically required by law,
Northland undertakes no obligation to update any forward-looking
statements to reflect events or circumstances after such date or to
reflect the occurrence of unanticipated events, whether as a result
of new information, future events or results, or otherwise.
For further information, please
contact:
Mr. Wassem Khalil, Senior Director, Investor
Relations647-288-1019investorrelations@northlandpower.com northlandpower.com
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