TORONTO, Dec. 28, 2023 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today announced the closing of its previously announced transaction with Gentari International Renewables Pte. Ltd., a subsidiary of clean energy solutions company Gentari Sdn Bhd (“Gentari”), pursuant to which Gentari has acquired 49 per cent of Northland’s ownership in the Hai Long offshore wind project located in Taiwan. Northland now holds a 30.6 per cent ownership interest in the overall project and will continue to take the lead role in Hai Long’s construction and operation.

The strategic partnership reflects the opportunity for both companies to share in the value creation of offshore wind development, while supporting Taiwan’s transition to renewable energy. This transaction marks another significant milestone for the Hai Long offshore wind project after the recently announced debt financial close, with Gentari having contributed final equity consideration of approximately NTD $23 billion (CAD $1.0 billion) and assuming its pro rata share of credit support for the project. The proceeds from the transaction will be used to repay Northland’s previously disclosed CAD $500 million short-term corporate credit facility and fund Northland’s remaining equity in the project. As part of the broader strategic partnership with Northland in Taiwan, Gentari previously acquired 49 per cent of Northland’s ownership interest in its Taiwan Round 3 offshore wind projects in the summer of 2023.

“Northland is delighted to welcome Gentari as an official long-term partner of the Hai Long offshore wind project and believes that they will add significant value,” said Mike Crawley, President and Chief Executive Officer of Northland. “Once completed, Hai Long will be the largest offshore wind project in Taiwan and will provide much needed clean energy to the grid and significant long-term, sustainable value to Taiwan’s economy. The project financing for Hai Long close in September was the largest in Taiwan and one of the largest globally. This completes Northland’s funding plan for the project, which is a huge milestone for the organization and is a testament to the value of the Hai Long project as an asset and the attractiveness of Taiwan as a market for green investment.”

“Gentari is pleased with the successful conclusion of this transaction. Today, we celebrate a strategic partnership with Northland for the Hai Long offshore wind project. Bringing Gentari to the forefront of the offshore wind industry, this is an important milestone in our commitment to advancing renewable energy globally. This not only aligns with our vision for a sustainable future but positions Gentari as a valued clean energy solutions partner in driving change towards achieving net zero goals. It is not just a transaction; it’s a powerful step towards realizing our clean energy ambitions and contributing meaningfully to a cleaner tomorrow,” commented Sushil Purohit, Chief Executive Officer of Gentari.

Hai Long’s total cost is projected to be approximately CAD $9 billion, with CAD $5 billion of the costs covered by non-recourse debt provided by the project lenders, approximately CAD $1 billion of pre-completion revenues derived during the project construction phase, and the remaining equity investment contributed by the project’s partners. Northland’s equity investment has been fully secured through funds raised under its at-the-market equity program in 2022 and with the completion of its partnership with Gentari.

ABOUT THE HAI LONG OFFSHORE WIND PROJECT

Located approximately 45 – 70 kilometers off the Changhua coast in the Taiwan Strait, Hai Long consists of two phases, Hai Long 2 and Hai Long 3, with an expected combined generating capacity of 1,022 MW. Hai Long 2A benefits from a 294 MW 20-year PPA with Taipower under a Feed-in-Tariff, and Hai Long 2B and 3 (728 MW) benefits from a 30-year Corporate Power Purchase Agreement (CPPA) with an investment grade counterparty. Hai Long will play an important role in helping Taiwan achieve its renewable energy target of 15 GW of offshore wind to be constructed between 2026 and 2035. Once operational, Hai Long will be one the largest offshore wind facilities in Asia, and will provide enough clean energy to power more than one million Taiwanese households including industrial facilities.

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 approximately 3.4 GW (net 2.9 GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing approximately 15 GW of potential capacity.

Publicly traded since 1997, Northland’s common shares, and Series 1 and Series 2 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.

ABOUT GENTARI

Gentari is focused on delivering the solutions required to put clean energy into action today, to transform how we live tomorrow. Gentari’s three initial core pillars of Renewable Energy, Hydrogen and Green Mobility form a comprehensive portfolio of solutions to help customers in their decarbonisation journey. Its global 2030 aspiration is to achieve 30-40 GW of installed capacity in renewable energy, up to 1.2 MTPA of clean hydrogen, and over 10% share of the public charging points and Vehicle-as-a-Service market across key countries in Asia Pacific. In the long term, Gentari aims to be the most valued clean energy solutions partner, creating greater impact, connecting businesses, and making the journey to a net zero future possible. 

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. 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. Readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include statements that are not historical facts and 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 the expected generating capacity and total cost of the project, the use of proceeds from the transaction, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and outlook of Northland,its subsidiaries, and joint ventures, all of which may differ from the expectations stated herein. 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, estimates, and assumptions 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, impacts of regional or global conflicts, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, offshore wind concentration, natural gas and power market risks, commodity price 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, procurement and supply chain risk, project development risks, disposition and joint venture risk, competition risks, acquisition risks, financing risks, interest rate and refinancing risks, liquidity risk, inflation risk, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, climate change, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labour relations, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s 2022 Annual Information Form, which can be found at www.sedarplus.ca under Northland’s profile and on Northland’s website at northlandpower.com. Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations, however, there may be other factors that cause actual results to differ materially from such expectations. 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, and Northland cautions you not to place undue reliance upon any such forward-looking statements.

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. Adam Beaumont, Vice President
Mr. Dario Neimarlija, Vice President
647-288-1019
investorrelations@northlandpower.com