LONGUEUIL, QC, Dec. 29, 2020 /CNW Telbec/ - Innergex
Renewable Energy Inc. (TSX: INE) ("Innergex") is proud to announce
the closing of a construction financing and tax equity commitment
for its Griffin Trail project, a 225 MW wind facility located in
Knox and Baylor Counties, in north-west Texas. The
US$276.2 million (CAN$354.5
million) financing has been arranged with Sumitomo Mitsui Banking
Corporation acting as Coordinating Lead Arranger, and CIBC acting
as Joint Lead Arranger, backed by a US$171.4
million (CAN$220.0 million) tax equity commitment from Wells
Fargo to be provided upon the commercial operation date.
"It was only a few months ago, when the U.S. Production Tax
Credits deadlines were extended, that we knew we were in a strong
position to bring Griffin Trail forward, and we have since made
rapid progress on development and construction," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "Securing construction
financing and tax equity commitment for this project is another
milestone, and I want to congratulate all Innergex employees
who contributed to this significant team effort."
Work on-site commenced in September and is progressing well with
the operations and maintenance building and road construction well
underway, and approximately 50% of foundations complete. A
construction agreement was executed with Blattner Energy, Inc.
and a Turbine Supply Agreement was executed for the supply of GE
wind turbines totaling 225 MW with deliveries starting in
January 2021. Deliveries of long-lead
items have started and the construction of the interconnection
point is underway by a local transmission provider.
Total construction costs of the Griffin Trail project are
projected to amount to US$284.7 million (CAN$365.4 million)
and its commissioning is scheduled in Q3 2021. The power
generated will be fed into the ERCOT transmission grid and sold on
the spot market.
The project is expected to produce a gross estimated long-term
average of 819.0 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$0.032), 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$4.5 million
(CAN$5.8 million) and a projected Adjusted EBITDA Proportionate
with PTCs of approximately US$26.7 million (CAN$34.3 million) per
year on average for the first five years of operation.
In addition, the tax equity commitment made by Wells Fargo
includes a partial pay as you go ("Pay-go") funding arrangement
under which, when the actual annual MWh production exceeds a
certain production threshold, the Tax Equity Investor is obligated
to make a cash contribution ("Pay-go Contribution") to the
Corporation. Expected Annual Pay-go Contribution for the Griffin
Trail project is $4.0 million
(CAN$5.2 million). In total, the project should generate an
annual contribution of US$30.7
million (CAN$39.4 million) when combining the projected
Adjusted EBITDA Proportionate and the Pay-go Contribution.
About Innergex Renewable Energy Inc.
For 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 75
operating facilities with an aggregate net installed capacity of
2,742 MW (gross 3,694 MW) and an energy storage capacity of 150
MWh, including 37 hydroelectric facilities, 32 wind farms and six
solar farms. Innergex also holds interests in 10 projects
under development, four of which are under construction, with a net
installed capacity of 555 MW (gross 629 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 6,871 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 power production,
successful development, construction and financing (including tax
equity funding) of the projects under construction, impact of
funding, 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 Adjusted EBITDA and projected Adjusted EBITDA
Proportionate, the estimated project size, costs and schedule,
including start of commercial operation for Development Projects,
the qualification of U.S. projects for PTCs and ITCs, Pay-go
Contribution 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 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 2019 Annual Report.
SOURCE Innergex Renewable Energy Inc.