LONGUEUIL, QC, July 30, 2021 /CNW Telbec/ - Innergex
Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation")
announces that the full commissioning of the 225.6 MW Griffin Trail
wind facility in north Texas was
achieved on July 26 and that it
concluded its tax equity funding today. The facility is sited on
approximately 26,000 acres of land and consists of 80 GE wind
turbines. The renewable energy generated will be fed into the ERCOT
transmission grid and sold on the spot market.
"Griffin Trail plays an important role in our diversification
efforts in Texas. Not only are we
adding a significant 225.6 MW of wind energy to our portfolio in
the United States, but since its
production will initially be sold entirely on the spot market in
Texas, Griffin Trail also further
diversifies our sources of revenues in the region," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "The facility allows us to
reduce our exposure to power hedges with the added benefit of
exposure to higher, scarcity prices. This is another example of
Innergex's commitment to moving away from power hedged financial
structures in the state to strengthen our position."
Total construction costs were slightly under budget. The
construction loan of US$256.2 million (CAN$319.0 million)
was repaid by a US$169.2 million
(CAN$210.6 million) tax equity investment, while the Corporation
contributed US$115.5 million
(CAN$143.8 million) in sponsor equity. The excess contribution of
the tax and sponsor equity funding will be used for construction
related spending and for holdback amounts following the end of the
construction activities.
The facility is expected to produce a gross estimated long-term
average of 831.4 GWh per year, enough to power approximately 57,000
Texan households with clean energy, and to benefit from 100% of the
US Production Tax Credits ("PTCs"), representing US$0.025 (CAN$0.031), indexed to inflation, per
KWh of electricity produced for the first 10 years of operations,
which is comparable to power purchase agreements with similar
tenors from government backed utilities in Canada. Griffin Trail should generate a
projected Adjusted EBITDA of US$8.1
million (CAN$10.1 million) and a projected Adjusted EBITDA
Proportionate with PTCs of approximately US$30.3 million (CAN$37.8 million) per year on
average for the first five years of operations. The PTCs, coupled
with other tax attributes, will support the US$169.2 million (CAN$210.6 million) tax
equity investment.
About Innergex Renewable Energy Inc.
For over
30 years, Innergex has believed in a world where abundant renewable
energy promotes healthier communities and creates shared
prosperity. As an independent renewable power producer which
develops, acquires, owns and operates hydroelectric facilities,
wind farms, solar farms and energy storage facilities, Innergex is
convinced that generating power from renewable sources will lead
the way to a better world. Innergex conducts operations in
Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 77
operating facilities with an aggregate net installed capacity of
3,057 MW (gross 3,927 MW) and an energy storage capacity of 150
MWh, including 37 hydroelectric facilities, 34 wind farms and six
solar farms. Innergex also holds interests in 8 projects under
development, two of which are under construction, with a net
installed capacity of 366 MW (gross 397 MW) and an energy storage
capacity of 329 MWh, as well as prospective projects at different
stages of development with an aggregate gross capacity totaling
6,875 MW. Its approach to building shareholder value is to generate
sustainable cash flows, provide an attractive risk-adjusted return
on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future
prospects, this press release contains forward-looking information
within the meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's projected financial
performance, power production, successful development, construction
and financing (including tax equity funding) of the projects under
construction, sources and impact of funding, project acquisitions,
and strategic, operational and financial benefits and accretion
expected to result from such acquisitions, business strategy,
future development and growth prospects, business integration,
governance, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use
of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's expected
production, the estimated project costs, projected revenues,
projected Revenues Proportionate, projected Adjusted EBITDA and
projected Adjusted EBITDA Proportionate, the qualification of U.S.
projects for PTCs and ITCs and other statements that are not
historical facts. Such information is intended to inform readers of
the potential financial impact of expected results, and of the
potential financial impact of completed and future acquisitions.
Such information may not be appropriate for other purposes.
Forward-looking Information is based on certain key assumptions
made by Innergex, including, without restrictions, assumptions
concerning project performance, economic, financial and financial
market conditions, expectations and assumptions concerning
availability of capital resources and timely performance by
third-parties of contractual obligations, receipt of regulatory
approvals and the divestiture of select assets. Although Innergex
believes that the expectations and assumptions on which such
forward-looking information is based are reasonable, under the
current circumstances, readers are cautioned not to rely unduly on
this forward-looking information as no assurance can be given that
they will prove to be correct. The forward-looking information
contained in this press release is made as of the date hereof and
Innergex does not undertake any obligation to update or revise any
forward-looking information, whether as a result of events or
circumstances occurring after the date hereof, unless so required
by law.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward Looking Information"
section of the Management's Discussion and Analysis for the
three-month period ended March 31,
2021.
Cautionary Statement Regarding Non-IFRS measures
The
unaudited condensed interim consolidated financial statements for
the three-month period ended March 31,
2021, have been prepared in accordance with International
Financial Reporting Standards ("IFRS"). However, some measures
referred to in this press release are not recognized measures under
IFRS and therefore may not be comparable to those presented by
other issuers. Innergex believes that these indicators are
important, as they provide management and the reader with
additional information about the Corporation's production and cash
generation capabilities, its ability to sustain current dividends
and dividend increases and its ability to fund its growth. These
indicators also facilitate the comparison of results over different
periods. Innergex's share of Revenues of joint ventures and
associates, Revenues Proportionate, Adjusted EBITDA, Adjusted
EBITDA Margin, Adjusted EBITDA Proportionate, Adjusted EBITDA
Proportionate Margin, Innergex's share of Adjusted EBITDA of joint
ventures and associates, Adjusted Net Loss, Free Cash Flow,
Adjusted Free Cash Flow, Payout Ratio and Adjusted Payout Ratio are
not measures recognized by IFRS and have no standardized meaning
prescribed by IFRS. Please refer to the "Non-IFRS Measures" section
of the Management's Discussion and Analysis for the three-month
period ended March 31, 2021.
SOURCE Innergex Renewable Energy Inc.