Northland Power Tops Up Majority Equity Stake in 600 MW North Sea
Offshore Wind Farm to 60%
TORONTO, ONTARIO--(Marketwired - Jan 29, 2014) - Northland Power
Inc. ("Northland") (TSX:NPI) (TSX:NPI.DB.A) (TSX:NPI.PR.A)
(TSX:NPI.PR.C) today announced it has entered into agreements for
the rights to acquire Typhoon Offshore B.V.'s 5% interest in
Gemini, a 600MW offshore wind project currently in advanced
development. Subject to final documentation and the approval of its
Board, this would top up Northland's intended majority equity stake
in Gemini to 60%.
Gemini is located 85 kilometres off the coast of the Netherlands
in the North Sea. Combining favourable sea bed conditions with one
of the strongest and most reliable wind resources in the world, the
North Sea could produce enough energy to power Europe four times
over. Once constructed, Gemini will be the largest wind farm in the
North Sea.
Northland has taken a lead role in completing the remaining
outstanding development activities since its announcement in August
2013, and intends to continue its active leadership role during
construction and into operations.
Gemini will play an important role in helping the Government of
Netherlands' achieve renewable energy targets mandated by the
European Union's Renewable Energy Directive, which calls for all
Member States to reach a 20% share of energy from renewable sources
by 2020. There is currently 5 GW of installed capacity in 58
operating offshore wind farms in European waters with another 5.5
GW in construction or advanced development. According to the
European Wind Energy Association (EWEA), it is anticipated that
there will be up to 150 GW of installed offshore wind power in the
EU by 2030, meeting 14% of the EU's electricity demand.
"Today's announcement underlines our confidence in this
project", noted John Brace, CEO of Northland Power. "We are very
pleased with the progress made to date, and look forward to working
with our consortium partners to bring Gemini to fruition."
Gemini is well advanced, and has received commitments for EUR
1,094 million in senior secured construction and term debt from 10
international commercial banks and Export Development Canada (EDC).
In association with a EUR 500 million facility previously announced
by the European Investment Bank and loans under negotiation and
subject to credit approval with three European export credit
agencies (Denmark's EKF, Germany's Euler Hermes and Belgium's
Delcredere/Ducroire), this completes the EUR 2.2 billion of senior
debt required by Project Gemini.
Project Gemini's total cost is projected to be EUR2.8 billion,
and is expected to be financed with a combination of non-recourse
project debt, mezzanine financing and equity from the
consortium.
"Acquiring the rights to a majority equity stake in Gemini is
consistent with our commitment to fostering sustainable growth that
allows us to deliver reliable returns to investors", added James
Temerty, Chairman of Northland Power's Board of Directors. "The
accretive nature of this project will benefit Northland's
shareholders over the long-term".
ABOUT NORTHLAND
Northland is an independent power producer founded in 1987,
and publicly traded since 1997. Northland develops, builds, owns
and operates facilities that produce 'clean' (natural gas) and
'green' (wind, solar, and hydro) energy, providing sustainable
long-term value to shareholders, stakeholders, and host
communities.
The company owns or has a net economic interest in 1,329 MW
of operating generating capacity, with an additional 90 MW (60 MW
net to Northland) of generating capacity currently in construction,
and another 190 MW (119 MW net to Northland) of wind, solar and
run-of-river hydro projects with awarded power contracts. In
addition, Northland has acquired the rights to a majority equity
stake in Gemini. Northland's cash flows are diversified over five
geographically separate regions and regulatory jurisdictions in
Canada, Europe and the United States.
Northland's common shares, Series 1 and Series 3 preferred
shares and convertible debentures trade on the Toronto Stock
Exchange under the symbols NPI, NPI.PR.A, NPI.PR.C and NPI.DB.A,
respectively.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements
which are provided for the purpose of presenting information about
management's current expectations and plans. Readers are cautioned
that such statements may not be appropriate for other purposes.
Forward-looking statements include statements that are predictive
in nature, depend upon or refer to future events or conditions, or
include words such as "expects," "anticipates," "plans,"
"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 future EBITDA, free cash
flows, dividend payment and dividend payout ratios, the
construction, completion, attainment of commercial operations, cost
and output of development projects, plans for raising capital, and
the operations, business, financial condition, priorities, ongoing
objectives, strategies and outlook of Northland and its
subsidiaries. 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,
its perception of historical trends, current conditions and
expected future developments, as well as other factors 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 that could
cause results or events to differ from current expectations
include, but are not limited to, construction risks, counterparty
risks, operational risks, foreign exchange rates, regulatory risks,
maritime risks for construction and operation, and the variability
of revenues from generating facilities powered by intermittent
renewable resources and the other factors described in the "Risks
and Uncertainties" section of Northland's 2012 Annual Report and
Annual Information Form, both of which can be found at
www.sedar.com under Northland's profile and on Northland's website
www.northlandpower.ca. 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.
The forward-looking statements contained in this release are
based on assumptions that were considered reasonable on January 29,
2014. 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.
Northland Power Inc.Sarah CharukDirector of
Communications647-288-1105Sarah.charuk@northlandpower.ca
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