BARRE, Vt., Oct. 26, 2016 /CNW/ -- Northern Power Systems
Corp. (TSX: NPS), a next generation renewable energy technology
company, announced that WEG S.A. (Bovespa: WEGE3 / OTC:
WEGZY) and NPS have executed a definitive agreement for WEG to
acquire Northern Power System's Utility Wind assets.
Under the agreement, the proven utility scale direct drive
technology developed and successfully deployed to date by both NPS
and WEG will be solely owned by WEG and its affiliates. All
assets, including the related patent portfolio for utility wind
greater than 1.5MW and the engineering team largely responsible for
developing this technology, become part of WEG. The
engineering team will remain based in Vermont and will work alongside the Brazilian
based wind engineering team to continue successful product
development work.
The companies plan an on-going collaboration providing wind
solutions around the world, WEG focusing on utility scale wind and
NPS on distributed energy solutions, including distributed
wind. WEG will continue to compensate NPS under the existing
arrangement paying royalties for sales in South America resulting in future payments of
up to an approximately $10 million.
Additionally, WEG will pay NPS up to a further $17.5 million in royalty payments over the next
decade for turbines shipped anywhere outside of South America.
WEG and NPS started collaborating in 2013 and since then have
successfully introduced a permanent magnet direct drive wind
turbines solution in the Brazilian market. "We have decided to move
forward and take this fundamental step in our wind energy
internationalization and growth strategy," said Mr. Eduardo de
Nóbrega, WEG Energy Managing Director.
Ciel Caldwell, Northern Power
Systems President and Chief Operating Officer added, "With a
rapidly evolving global focus on affordable clean energy, I am very
excited in the future for Northern focusing on delivering
distributed energy solutions, and for WEG to expand its regionally
successful utility wind activities by offering this utility-scale
platform globally. This agreement is a structured way for NPS
and WEG to continue such successes in the global market."
According to Mr. Nóbrega, "We look forward to a continued
collaboration with NPS as we look globally at wind solutions.
We have proven in the Brazilian market that we can successfully
bring the NPS developed technology to market and we intend to do so
globally. With the compliment of an engineering team from NPS
and our existing team we believe that we can be successful in
bringing appropriate technological advancements to our wind
platforms for global expansion. Looking at the
opportunities that would arise in distributed wind, we look forward
to, in near future, also working with NPS on delivering
distributed wind in relevant markets."
Ms. Caldwell concluded, "The economics of this transaction for
NPS provide both near-term cash acceleration as well as an on-going
robust income stream, giving us further confidence in our balance
sheet.
About Northern Power Systems
Northern Power Systems designs, manufactures, and sells wind
turbines and power technology products, and provides engineering
development services and technology licenses for energy
applications, into the global marketplace from its US headquarters
and European offices.
- Northern Power Systems has almost 40 years' experience in
technologies and products generating renewable energy.
- Northern Power Systems currently manufactures the NPS™ 60 and
NPS™ 100 turbines. With over 12 million run time hours across its
global fleet, Northern Power wind turbines provide customers with
clean, cost effective, reliable renewable energy.
- Patented next generation permanent magnet direct drive (PMDD)
technology uses fewer moving parts, delivers higher energy capture,
and provides increased reliability due to reduced maintenance and
downtime.
- Northern Power Systems' FlexPhase™ power converter platform
uses patented converter architecture and advanced controls
technology for advanced grid support and generation
applications.
- Northern Power Systems offers comprehensive in‐house
development services, including systems level engineering, advanced
drivetrains, power electronics, PM machine design, and remote
monitoring systems to the energy industry.
To learn more about Northern Power Systems, please visit
www.northernpower.com
Notice regarding forward-looking statements:
This
release includes forward-looking statements regarding Northern
Power Systems and its business, which may include, but is not
limited to, product and financial performance, regulatory
developments, supplier performance, anticipated opportunity and
trends for growth in our customer base and our overall business,
our market opportunity, expansion into new markets, and execution
of the company's growth strategy. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "is expected", "expects",
"scheduled", "intends", "contemplates",
"anticipates", "believes", "proposes" or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Such statements are based
on the current expectations of the management of Northern Power
Systems. The forward-looking events and circumstances discussed in
this release may not occur by certain specified dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting the company, including risks
regarding the wind power industry; production, performance and
acceptance of the company's products; our sales
cycle; our ability to convert backlog into revenue; performance by
the company's suppliers; our ability to maintain
successful relationships with our partners and to enter into new
partner relationships; our performance internationally; currency
fluctuations; economic factors; competition; the equity markets
generally; and the other risks detailed in Northern Power
Systems' risk factors discussed in filings with the
U.S. Securities and Exchange Commission (the "SEC"), including but
not limited to Northern Power Systems' Annual Report
on Form 10-K filed on July 25, 2016,
as well as other documents that may be filed by Northern Power
Systems from time to time with the SEC. Although Northern Power
Systems has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those
anticipated, estimated or intended. No forward-looking statement
can be guaranteed. Except as required by applicable securities
laws, forward-looking statements speak only as of the date on which
they are made and Northern Power Systems undertakes no obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future events, or
otherwise.
For more information, contact:
Eric Larson
Chief Accounting Officer
802-661-4673
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SOURCE Northern Power Systems Corp.