28.12.2023 13:40:04 - dpa-AFX: GNW-Adhoc: Northland Power and Gentari Renewables Announce Closing of Hai Long Partnership
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
(mailto:investorrelations@northlandpower.com)
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