Northland Power Inc. (“
Northland” or the
“
Company”) (TSX: NPI) is pleased to announce the
signing of a Corporate Power Purchase Agreement (CPPA) for
production from its Hai Long offshore wind project in Taiwan
secured under auction. The agreement is with an investment grade
counterparty (S&P: AA-) and covers 100 percent of the power
generated from Hai Long 2B and 3, which have a combined capacity of
744-megawatts (MW). The agreement is for a 20-year period at a
fixed-price, commencing once Hai Long reaches full commercial
operations in late 2026.
Hai Long consists of three offshore wind sites
being developed as a single project with a combined gross capacity
of 1,044 MW. In addition to Hai Long 2B and 3, the project includes
Hai Long 2A (300 MW). Hai Long 2A entered a separate 20-year power
PPA with Taipower in 2019 under a Feed-in-Tariff allocation.
Northland has a 60 percent interest in Hai Long.
Under the terms of the CPPA, Hai Long 2B and 3
will receive a fixed price for delivering power and Taiwan
Renewable Energy Certificates (T-RECs) during the 20-year contract
period. In 2018, the projects were allocated grid capacity for
connection under Taiwan’s fixed auction program and awarded PPAs
with Taiwan Power Company (Taipower). The contracted price under
the CPPA is more favourable than the fixed auction rate originally
awarded in 2018. The improved rate enhances the economics of the
project and is a key accomplishment as Northland progresses Hai
Long towards securing non-recourse project level debt financing and
financial close later this year. The PPAs with Taipower are not
affected by the signing of the CPPA and provide a backstop to the
CPPA.
Mike Crawley, President and Chief Executive
Officer of Northland noted, “Today’s announcement is a substantial
milestone for Northland and for our partners in the Hai Long
project. This agreement marks Northland’s first signed corporate
PPA and aligns with our commitment to supporting the global
decarbonization efforts by governments and corporate entities
through the development of renewable energy. In particular, the
development of Hai Long will support Taiwan’s transition to
renewable energy.”
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 3.0 GW (net 2.6 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. 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 guidance, the completion of
construction, attainment of commercial operations which may differ
from expectations stated herein, 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 include, but
are not limited to, risks associated with sales contracts,
Northland’s reliance on the performance of its offshore wind
facilities at Gemini, Nordsee One and Deutsche Bucht for
approximately 50% of its Adjusted EBITDA and Free Cash Flow,
counterparty risks, contractual operating performance, variability
of sales from generating facilities powered by intermittent
renewable resources, offshore wind concentration, natural gas and
power market risks, operational risks, recovery of utility
operating costs, Northland’s ability to resolve issues/delays with
the relevant regulatory and/or government authorities, 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.
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
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