- Innergex and Hydro-Québec each owns 50% of the 60 MW
portfolio
- Increases Innergex's net capacity by 30 MW
- 5 employees to join Innergex's team
- Innergex and Hydro-Québec enter the New York renewables market
LONGUEUIL, QC, Oct. 25, 2021 /CNW Telbec/ - Innergex Renewable
Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") and HQI US
Holding LLC, a subsidiary of Hydro-Québec ("Hydro-Québec") are
pleased to announce the completion of the previously disclosed
50-50 joint acquisition of the 60 MW Curtis Palmer hydroelectric
portfolio ("Curtis Palmer" or the "Facilities") in the state of
New York, for a total
consideration of US$318.4 million
($393.4 million), including
US$9.2 million ($11.4 million) of cash and working capital
adjustments.
The Facilities consists of two run-of-river hydroelectric
facilities, Curtis Mills (12 MW) and Palmer
Falls (48 MW). Curtis Palmer
has a power purchase agreement for energy, RECs and capacity with
Niagara Mohawk Power Corporation. The 5 employees currently working
at the Facilities are joining the Innergex team. This joint
acquisition is the first under the Strategic Alliance formed by
Innergex and Hydro-Québec in 2020.
"As the first acquisition made under the Strategic Alliance with
Hydro-Québec, Curtis Palmer is proof
of the excellent collaboration between our teams and the full
potential of the Strategic Alliance in Innergex's growth strategy,"
said Michel Letellier, President and
Chief Executive Officer of Innergex. "Together, we will continue to
join our forces and expertise and work on our shared purpose of
increasing our presence in the energy transition and creating value
with high-quality assets."
"Together with Innergex, we have embraced the opportunity to
acquire strategic assets that will generate attractive returns for
Québec, and we continue to further our alliance. By investing
directly in hydropower generation in New
York, we are strengthening our business relationship with
the state and pursuing our efforts to promote renewable energy in
North America," said Pierre Despars, Vice President – Corporate
Strategy and Business Development for Hydro-Québec.
The Facilities are expected to generate an average annual
Adjusted EBITDA of US$42.5 million
($52.5 million).
On September 3, 2021, Innergex has
completed a bought deal equity financing of common shares along
with a private placement with Hydro-Québec to fund the
purchase price of the acquisition of Curtis
Palmer.
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 79
operating facilities with an aggregate net installed capacity of
3,101 MW (gross 3,801 MW) and an energy storage capacity of 150
MWh, including 40 hydroelectric facilities, 32 wind farms and 7
solar farms. Innergex also holds interests in 8 projects under
development, 2 of which are under construction, with a net
installed capacity of 168 MW (gross 206 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
6,931 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.
About Hydro-Québec
Hydro-Québec generates,
transmits and distributes electricity. It is Canada's largest electricity producer and
ranks among the world's largest hydropower producers. Its sole
shareholder is the Québec government. As a recognized leader in
hydropower and large transmission systems, Hydro-Québec exports
clean, renewable power and commercializes its expertise and
innovations on world markets. Its research institute, IREQ,
conducts R&D in energy efficiency, energy storage and other
energy-related fields. Hydro-Québec invests $100 million in research every year.
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, and benefits and accretion expected to result from
acquisitions, 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, projected
Adjusted EBITDA, and other statements that are not historical
facts. Such information is intended to inform readers of the
potential financial impact of expected results, of the potential
financial impact of completed and future acquisitions, and of the
Corporation's ability to sustain current dividends and to fund its
growth. 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, and receipt of regulatory
approvals. 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-
and six-month periods ended June 30,
2021.
Cautionary Statement Regarding Non-IFRS measures
The
unaudited condensed interim consolidated financial statements for
the three- and six-month periods ended June
30, 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 Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow
and 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- and six-month periods ended June 30, 2021.
SOURCE Innergex Renewable Energy Inc.