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The sale of a 29.4% stake in the Hai Long Offshore Wind project brings a strategic long-term partner
This news release constitutes a “purported news release” for purposes of the company’s September 7, 2022 prospectus supplement to its June 16, 2021 short base prospectus.
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TORONTO, Dec. 14, 2022 (GLOBE NEWSWIRE) — Northland Power Inc. (“Northland” or “Company”) (TSX: NPI) today signed an agreement with Gentari International Renewables Pte. doo (“Gentari”) – who have agreed to acquire Northland’s 49% ownership stake in the Hai Long wind farm project (“Project”) located in Taiwan. Upon closing, the transaction will result in Gentari holding a 29.4% indirect equity interest in the project. Northland will remain the single largest shareholder of the project with 30.6% and will continue to take a leading role in its construction and operation.
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This transaction marks a significant milestone in the development of the project, enabling Northland to partner with Gentari through an equity participation of approximately NT$18 billion (CAD 0.8 billion). The final equity consideration remains subject to final adjustments in accordance with the terms of the purchase agreement. Closing of the transaction is expected to occur upon the achievement of financial close of the Project and remains subject to receipt of customary regulatory approvals and satisfaction of all closing conditions pursuant to the terms of the purchase agreement.
The two companies also seek to establish a broader strategic partnership, promoting the further growth of Taiwan’s offshore wind industry, and have signed an exclusivity agreement in this regard. This partnership demonstrates the opportunity for both companies to share value creation in offshore wind development, while supporting the global transition to renewable energy.
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Northland has nearly 3 GW of gross capacity for projects slated for financial close and construction to begin in the next two years. When these projects are completed, Northland’s total gross capacity will nearly double to more than 6.5 GV by 2027. Long-term, the Company continues to advance its previously discovered pipeline of over 10 GV that includes its identified projects and additional opportunities to support the Company’s growth .
Gentari has a stated goal of building 30 to 40 GW of renewable energy capacity by 2030 through utility-scale solar, onshore and offshore wind and battery storage projects, targeting commercial, industrial and retail customers.
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Mike Crawley, President and Chief Executive Officer of Northland noted, “Today’s announcement is a significant milestone for Northland as it represents the first transaction as part of our partnership model. We are pleased to welcome Gentari as part of the partnership in the Hai Long Offshore Wind Project and look forward to developing a wider strategic partnership in Hai Long and potentially beyond. This partnership is further evidence of global interest in developing renewable energy projects to aid global efforts to decarbonize and transition to low carbon economies.
Mohammad Azhar, Chief Renewable Energy Officer at Gentari, added: “This marks Gentari’s inaugural entry into the offshore wind segment. The partnership with Northland offers an opportunity for even greater collaboration in the development of other offshore wind opportunities in Taiwan and beyond.
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ABOUT THE POWER OF THE NORTH
Northland Power is a global power producer committed to helping the clean energy transition by generating electricity from clean renewable sources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green energy infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and operates a diverse generation mix, including onshore renewable energy sources, efficient natural gas energy, and energy supply 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 (2.6 GW net) of operating capacity. The company also has a significant inventory of projects under construction and in various stages of development that include over 14 GVs of potential capacity.
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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 .
ABOUT THE GENTARS
Gentari is a clean energy company focused on delivering the integrated, net-zero solutions needed to put cleaner energy into action today, to transform the way we live tomorrow. Gentari offers lower carbon solutions through three initial core pillars – renewable energy, hydrogen and green mobility, forming a portfolio of solutions spanning the electron value chain to help customers achieve net zero emissions. In the long term, Gentari aims to be a complete package of net zero solutions, creating greater value, connecting businesses and enabling the journey to zero.
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FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements, including certain forward-looking financial information that is 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 on or relate to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “anticipates,” “believes,” “estimates,” “intends,” “goal,” “projects,” “anticipates,” 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 about Northland’s expectations for
management, completion of construction, achievement of commercial operations that may differ from the expectations set forth herein, potential for future production from the project pipeline, cost and performance of development projects, litigation requirements, plans to raise capital, as well as future business, operations, financial condition , financial results, priorities, ongoing objectives, strategies and prospects of Northland and its subsidiaries. These statements are based on certain material factors or assumptions used in the development of forward-looking statements, including the design specifications of development projects, the terms 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 believed to be appropriate under the circumstances. Although these forward-looking statements are based on 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, the risks associated with the purchase agreements, Northland’s reliance on the performance of its offshore wind farms 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 generation facilities powered by intermittent renewable resources, offshore wind concentration, natural gas and electricity market risks, operational risks, utility operating cost recovery , Northland’s ability to resolve issues/delays with relevant regulatory and/or governmental authorities, permitting, construction risks, project development risks, acquisition risks, financing risks, interest rate and refinancing risks, liquidity risk, credit rating risk, currency fluctuation risk, cash flow variability and potential impact on dividends, taxation, natural events, environmental risks, worker health and safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, reliance on info information technology, labor relations, reputational risk, insurance risk, co-ownership risks, bribery and corruption risk, legal contingencies and other factors described in the “Risk Factors” section of the 2021 Annual Information Form, which can be found at www.sedar.com under Northland’s profile and on Northland’s website at northlandpover.com.
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The forward-looking statements contained in this release are based on assumptions believed to be reasonable as of the date of this release. Except as expressly 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 of Investor Relations
647-288-1019
investorrelations@northlandpower.com
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