LONGUEUIL, QC, Aug. 16,
2022 /CNW Telbec/ - Innergex Renewable Energy
Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased to
announce the signing of a 30-year, 320 MW power purchase
agreement ("PPA") with PacifiCorp, a Berkshire Hathaway
subsidiary, for the electricity to be produced by the Boswell
Springs wind project located in eastern Wyoming. The commercial operation date is
scheduled during Q4 2024.
"The execution of the Boswell Springs PPA with PacifiCorp is a
significant milestone for the project and Innergex's development
efforts in the United States. The
contract will provide Innergex with long-term revenue certainty
with a high quality, well-capitalized utility," said Michel Letellier, President and Chief Executive
Officer of Innergex. "Once constructed, Boswell Springs promises to
contribute to improving our payout ratio and to make a significant
contribution to the decarbonization targets of the western states,
where Innergex sees growing opportunities."
The Boswell Springs project was selected in response to a
competitive solicitation in PacifiCorp's 2020 All-Source Request
for Proposals, issued in July 2020
and is expected to benefit from 100% of the US Production Tax
Credits ("PTCs"). Total construction costs of the Boswell
Springs wind project are expected to amount to US$544 million (CAN$702 million).
Excluding any financing structure which have yet to be
concluded, operating cash flows from the Boswell Springs wind
project are expected to reach approximately US$22.6 million (CAN$29.2 million) on
an annual basis. Also, the project is expected to contribute an
annual approximative US$39.2 million
(CAN$50.6 million) from PTCs, which is indexed to inflation.
The Boswell Springs PPA's effectiveness is subject to the
Wyoming Public Service Commission's final written order granting
the Certificate of Public Convenience and Necessity for Gateway
South.
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 84
operating facilities with an aggregate net installed capacity of
3,484 MW (gross 4,184 MW) and an energy storage capacity of 159
MWh, including 40 hydroelectric facilities, 35 wind farms, 8
solar farms and 1 battery energy storage facility. Innergex also
holds interests in 13 projects under development, with a net
installed capacity of 731 MW (gross 768 MW) and an energy
storage capacity of 745 MWh, 3 of which are under construction, as
well as prospective projects at different stages of development
with an aggregate gross installed capacity totaling 7,495 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 power production, successful
development, construction and financing (including tax equity
funding) of Development Projects, 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 estimated
targeted revenues and intention to pay dividend quarterly, the
estimated project size, costs, and start of commercial operation
for Development Projects, the qualification of U.S. projects for
PTCs 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 expected commissioning
of Development Projects, 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 the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity.
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, 2022.
SOURCE Innergex Renewable Energy Inc.