TORONTO, April 07, 2022 (GLOBE NEWSWIRE) -- 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.
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 Relations