TORONTO, April 7, 2022 (GLOBE NEWSWIRE) — Northland Power Inc. (“northern region” or the “Business”) (TSX: NPI) today announced the sale of its Iroquois Falls and Kingston efficient natural gas 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 needed for its long-term growth goals.
About the Iroquois Falls and Kingston facilities:
- Iroquois Falls is a 120 MW natural gas-fired combined cycle generation 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 also came online 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 helped diversify the country’s energy mix away from coal. As Northland evolves, its strategic focus shifts to leveraging opportunities within renewable energy to support global decarbonization efforts and generate positive financial returns for shareholders. As the Company focuses on developing 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 the Iroquois Falls and Kingston facilities will either join the acquiring company or be repositioned within Northland.
“As a global developer focused on promoting renewable energy development, 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 decarbonisation assets and our focus has been on these asset classes. This transaction marks an important step in the evolution of our business, represents a 21% reduction in our gas-fired generation capacity and further supports our efforts to reduce Northland’s carbon intensity. I want to recognize and thank the employees of these facilities for their contributions to Northland’s success and wish them all the best.”
The sale aligns with Northland’s ESG goals by helping to support:
- Carbon reduction targets through a reduction in efficient natural gas generation by 230 MW from 973 MW to 743 MW
- Help the company achieve its goals set for 2030
- Global decarbonization efforts of the countries in which the Company operates by using the income received to reinvest in significant green/renewable energy projects
ABOUT NORTHLAND POWER
Northland Power is a global energy 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 energy infrastructure assets and is a world leader in offshore wind power. In addition, Northland owns and manages a diversified generation mix that includes onshore renewables, efficient natural gas power, and power delivery 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 (2.8 GW net) of operating capacity. The Company also has a significant inventory of projects under construction and in various stages of development encompassing more than 14 GW of potential capacity.
Publicly traded since 1997, Northland common stock, 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.
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 plans and expectations. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed or implied by these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not occur or occur. Forward-looking statements include statements that are predictive in nature, depend on or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “predicts”, “believes”, “estimates”, ” “intens”, “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 (and adjusted) cash flows and amounts per share, guidance, the completion of construction, the achievement of business operations, the future production potential of the pipeline project, cost and production of development projects, litigation claims, plans for raising capital and future operations, the business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook for Northland and its subsidiaries. These statements are based on certain important factors or assumptions that were applied in developing the forward-looking statements, including design specifications of development projects, provisions of contracts to which Northland or a subsidiary is a party, current plans of the management and its perception of historical trends, current conditions and expected future developments, as well as other factors considered appropriate in the circumstances. While 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 that could cause results or events to differ from current expectations include, but are not limited to, risks associated with revenue contracts, the impact of the COVID-19 pandemic, Northland’s reliance on the performance of its facilities offshore wind at Gemini, Nordsee One and Deutsche Bucht for approximately 60% of their adjusted EBITDA and free cash flow, counterparty risks, contractual operating performance, revenue variability from generation facilities fueled by intermittent renewable resources, wind concentration marine, energy and natural gas market risks, operating risks, utility operating cost recovery, permitting, construction risks, project development risks, acquisition risks, financing risks, interest rate and refinancing risks, liquidity risk, credit rating risk, currency fluctuation risk, v cash flow variability and possible impact on dividends, taxes, natural events, environmental risks, risks to the health and safety of workers, market compliance risk, government regulations and policy risks, utility rate regulation risks public, international activities, dependence on information technology, labor relations, reputational risk, insurance risk, risks related to co-ownership, risk of bribery and corruption, legal contingencies and the other factors described in the “Risk 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 or implied by these forward-looking statements and, accordingly, there can be no assurance that any of the events anticipated by the forward-looking statements will occur or occur.
The forward-looking statements contained in this release are based on assumptions believed to be reasonable as of the date hereof. Except as specifically required by law, Northland undertakes no obligation to update any forward-looking statement to reflect events or circumstances after such date or to reflect the occurrence of unforeseen events, whether as a result of new information, future events or results, or on the contrary.
For more information contact:
Mr. Wassem Khalil, Senior Director, Investor Relations