Sale of 29.4% Interest in Hai Long Offshore Wind Project Brings Onboard Strategic Long-term Partner

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated September 7, 2022 to its short form base shelf prospectus dated June 16, 2021

TORONTO, Dec. 14, 2022 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today signed an agreement with Gentari International Renewables Pte. Ltd. (“Gentari”) –who have agreed to acquire 49% of Northland’s ownership interest in the Hai Long offshore wind project (the “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 as the single largest shareholder of the Project with 30.6% and will continue to take the lead role in its construction and operation.

This transaction marks a significant milestone in the development of the Project, allowing Northland to partner with Gentari through equity consideration of approximately NT $18 billion (CAD $0.8 billion). Final equity consideration remains subject to closing adjustments in accordance with the terms of the purchase and sale agreement. Transaction close is expected to occur following 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 and sale agreement.

The two companies are also seeking to establish a broader strategic partnership, promoting further growth in Taiwan’s offshore wind industry, and have signed an Exclusivity Agreement in this regard. This partnership demonstrates an opportunity for both companies to share the value creation in the development of offshore wind, while supporting the global transition to renewable energy.

Northland has almost 3 GW of gross capacity for projects that are scheduled for financial close and commencement of construction within the next two years. Once these projects are complete, Northland’s total gross capacity will nearly double to more than 6.5 GW by 2027. Longer-term, the Company continues to advance its previously disclosed pipeline of over 10 GW encompassing its identified projects and additional opportunities to support growth of the Company.

Gentari has an established target of building 30 to 40 GW in renewable energy capacity by 2030 through utility-scale projects across solar, onshore and offshore wind, and battery storage, targeting commercial, industrial, and retail customers.

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 delighted to welcome Gentari as part of the partnership in the Hai Long offshore wind project and look forward to developing the broader strategic partnership in Hai Long and potentially further beyond. This partnership is further evidence of the global interest in developing renewable energy projects to aid global decarbonization efforts and the transition to low carbon economies.”

Mohammad Azhar, Chief Renewables Officer of 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 developing other offshore wind opportunities in Taiwan and beyond.”

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.

ABOUT GENTARI

Gentari is a clean energy company focused on delivering the integrated net zero solutions required to put cleaner energy into action today, to transform how we live tomorrow. Gentari offers lower carbon solutions through three initial core pillars – Renewable Energy, Hydrogen and Green Mobility, forming a portfolio of solutions cutting across the electron value chain to help customers achieve net zero emissions. In the long term, Gentari aims to be a full suite net zero solutions provider, creating greater value, connecting businesses, and making the journey to net zero possible.

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 Relations
647-288-1019
investorrelations@northlandpower.com