- Signature of a 30-year power purchase agreement with
Hydro-Québec for electricity to be generated by the Lotbinière
Ndakina community wind project (100 MW)
- Partnership between Innergex (50%), the RCM of Lotbinière
(45%), the Abenaki Council of Odanak (2.5%) and the Abenaki Council of
Wôlinak (2.5%)
- Community and Indigenous partnership to bring economic and
social benefits to the local community
- Guaranteed steady cash flow for 30 years, indexed to
inflation
LONGUEUIL, QC, April 15,
2024 /CNW/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation"), the Regional
County Municipality of Lotbinière ("RCM of Lotbinière") and the
Abenaki Councils of Odanak and
Wôlinak are pleased to announce the signing of a 30-year power
purchase agreement with Hydro-Québec (S&P credit rating: AA-)
for the electricity to be generated by the 100 MW community wind
power project.
« The signing of this long-term contract with Hydro-Québec
marks a significant milestone in the project's progress. By
producing reliable, competitively priced wind energy, we will
contribute to strengthening the stability of the power grid while
meeting Quebec's growing energy
needs. This agreement underscores our determination to support the
ambitions of Canadian utilities in the energy transition, while
guaranteeing ongoing revenues for our project, » said Michel Letellier, President and Chief Executive
Officer of Innergex.
« The signing of the power purchase agreement with Hydro-Québec
marks the culmination of a long administrative process conducted in
concert with our partners, and sets in motion the actual
development of the project by ensuring with the community that it
is socially acceptable, both to the citizens and to the various
organizations and associations concerned, all in order to meet the
growing demand for renewable energy, » says Daniel Turcotte, Prefect of the RCM of
Lotbinière.
« We are pleased to see the progress of our project, which is
important for the prosperity of future generations, and which also
recognizes our role as guardians of the Ndakina, our ancestral
territory. We will continue to be involved to ensure territorial
development that respects our values and traditions, » said
Rick O'Bomsawin, Chief of the
Abenaki Council of Odanak.
« I'm very proud to see our project reach this important
milestone. It allows us to look forward to significant economic
benefits for the W8banaki Nation, and the continuation of a
fruitful collaboration with our partners at Innergex and the RCM of
Lotbinière towards a sustainable and inclusive energy transition, »
said Michel R. Bernard, Chief of the
Abenaki Council of Wôlinak.
The long-term power purchase agreement is structured as a
take-or-pay contract, indexed to a predefined percentage of the
Consumer Price Index ("CPI"), ensuring financial stability and
protection against inflation.
On January 26, 2024, the
Lotbinière Ndakina wind project was selected in Hydro-Québec's call
for tenders. Upon commercial commissioning, scheduled in late 2028,
the project will generate enough electricity to power the
equivalent of 20,000 households.
Construction of the Lotbinière Ndakina wind project will
require the creation of around 200 jobs and will involve the
participation of local and regional businesses. Long-term,
permanent, skilled jobs will also be created during the operating
period.
Interconnection and collector system costs will be reimbursed
by Hydro-Québec when the facility is commissioned.
The project is subject to the execution of contracts with
suppliers, and to the successful completion of permit application
processes and regulatory requirements.
About the RCM of
Lotbinière
Located on the south shore of Quebec
City and to the west of Lévis, the RCM of Lotbinière has
seen a strong growth in its territory and population (36,424
inhabitants in 2023) over the past several years. Despite this
development, 98% of the RCM's territory is in provincial
agricultural zones (the second-highest agricultural GDP among all
RCMs in Quebec), making the
territory and agricultural activities a major component of its
identity. Having been involved with the local municipality in the
commissioning of the Mont-Sainte-Marguerite wind farm in
Saint-Sylvestre some ten years
ago, this is not the RCM's first experience. The project covered by
this request for proposals is in line with the RCM's vision of
sustainable development through its various planning documents
adopted over the past two decades. It is also in line with the
RCM's desire to promote the development of a green economy on its
territory.
About the Abenaki Councils of
Odanak and Wôlinak
The Abenaki Councils of Odanak
and Wôlinak form the W8banaki Nation. The name W8banaki comes from
the combination of the words "W8ban" (light, glow or dawn) and
"Aki" (land), meaning "People of the Dawn". Proud of their cultural
and linguistic heritage, before the arrival of Europeans, the
W8banakiak shared vast forested areas in present-day southern
Quebec, Maine, New
Hampshire and Vermont, as
well as parts of Massachusetts and
New Brunswick. This vast area
forms the Ndakina - "Our Territory" - whose name designates the
ancestral territory of the W8banaki Nation. Through their knowledge
of the territory and their willingness to defend the interests of
their members, the Abenaki Councils of Odanak and Wôlinak are key players in any
project involving the Ndakina.
Still present and active on its ancestral territory, the
W8banaki Nation now numbers over 3,000 individuals, spread mainly
across Quebec and Canada, as well as the United States. The communities of
Odanak and W8linak, located
respectively on the banks of the Alsig8ntegw and W8linaktegw
(Saint-François and Bécancour rivers) in Centre-du-Québec, are the
only W8banakiak settlements on the Ndakina.
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, which led to Innergex being recognized
as Canada's best corporate citizen
in 2023 by Corporate Knights. 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 87
operating facilities with an aggregate net installed capacity of
3,600 MW (gross 4,234 MW) and an energy storage capacity of 409
MWh, including 41 hydroelectric facilities, 35 wind facilities, 9
solar facilities and 2 battery energy storage facilities. Innergex
also holds interests in 10 projects under development with a net
installed capacity of 728 MW (gross 826 MW) and an energy storage
capacity of 295 MWh, 4 of which are under construction, as well as
prospective projects at different stages of development with an
aggregate gross installed capacity totaling 10,071 MW. Its approach
to building shareholder value is to generate sustainable cash flows
and provide an attractive risk-adjusted return on invested
capital.
To learn more, visit innergex.com or connect with us
on LinkedIn.
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, prospective
projects, successful development, construction and financing
(including tax equity funding) of the projects under construction
and the advanced-stage prospective projects, sources and impact of
funding, execution of non-recourse project-level financing
(including the timing and amount thereof), structure of power
purchase agreements, business strategy, 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 targeted
production, the estimated project size, costs and schedule,
including obtainment of permits, start of construction, work
conducted and start of commercial operation, 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 pay a dividend 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; availability of capital resources and timely performance
by third parties of contractual obligations; favourable economic
and financial market conditions; average merchant spot prices
consistent with external price curves and internal forecasts; no
material changes in the assumed U.S. dollar to Canadian dollar and
Euro to Canadian dollar exchange rate; no significant variability
in interest rates; the Corporation's success in developing and
constructing new facilities; no adverse political and regulatory
intervention; 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 year
ended December 31, 2023.
www.innergex.com
SOURCE Innergex Renewable Energy Inc.