- The 102 MW Mesgi'g Ugju's'n 2 wind facility in the MRC
d'Avignon will be covered by a 30-year "take-or-pay" power purchase
agreement indexed to inflation expected to be concluded with
Hydro-Québec
- Second project led by a 50-50 partnership between the three
Mi'gmaq communities in Quebec and
Innergex, following the success of the 150 MW Mesgi'g Ugju's'n wind
facility commissioned in 2016
- The partnership will bring economic benefits to the local
communities through employment opportunities and a social
commitment fund
- Will benefit from good knowledge of the land and wind resource
and maximize the use of existing roads, facilities and
interconnections, resulting in a minimized environmental
impact
LONGUEUIL, QC, March 15,
2023 /CNW/ - Innergex Renewable Energy Inc. (TSX:
INE) ("Innergex" or the "Corporation") and Mi'gmawei Mawiomi
Business Corporation ("MMBC") are pleased to announce that their
102 MW Mesgi'g Ugju's'n 2 ("MU2") wind project has been selected in
Hydro-Québec's request for proposals. The project, which will be
located in the MRC d'Avignon, is an extension to the existing
150 MW Mesgi'g Ugju's'n wind facility, and a result of a 50-50
partnership between Innergex and the three Mi'gmaq communities in
Quebec – Gesgapegiag, Gespeg and
Listuguj – represented by MMBC.
Its commissioning is scheduled in 2026, and the power purchase
agreement, to be concluded with Hydro-Québec (AA- rating by
S&P), is expected to be structured as a 30-year "take-or-pay"
contract indexed to inflation.
"We are thrilled to continue our partnership with MMBC on this
second wind project as we work very well together and have
excellent relationships with the local communities," said
Michel Letellier, President and
Chief Executive Officer of Innergex. "This project is a good
example of Innergex's responsible growth that balances people, our
planet and shared prosperity. The partnership will bring direct
social and economic benefits to the region, a feature which
resulted in very positive reactions during public information
meetings held last year. In addition, since the project plans to
maximize the use of existing roads, facilities and interconnections
of Mesgi'g Ugju's'n, we expect the environmental impact to be
minimized."
"Our success in this request for proposals shows our
determination to sustainably harness our natural resources while
supporting our communities with structuring projects, creating
jobs, and allowing us to diversify our sources of income," said
Frédéric Vicaire, Chief Executive Officer of MMBC. "The wind power
industry is aligned with our interest to contribute to the
decarbonization effort that the entire planet must undertake. We
are proud to continue building our Nation while being a committed
player in this effort. This project will also generate significant
benefits for our communities. As with the existing Mesgi'g Ugju's'n
facility, MMBC will receive and manage half of the profits from
this second phase for community development projects."
In addition, the project should provide an annual financial
contribution and set up a social commitment fund to support local
development initiatives with local municipalities. The project will
contribute to support the wind industry supply chain in the Gaspé
Peninsula and Quebec.
The construction of the Mesgi'g Ugju's'n 2 wind farm will
involve the participation of local and regional businesses. The
construction alone will require the creation of approximately 200
jobs during its peak period, while long-term, permanent and
qualified jobs will also be created during operations.
Interconnection costs and collector system will be reimbursed by
Hydro-Québec at the commissioning of the facility. Project costs
are estimated at approximately $277.4
million which are expected to be financed with approximately
75% to 80% of long-term, non-recourse project debt and the
remaining will be funded by sponsor equity to be shared equally
among the partners.
This project is subject to the execution of agreements with
Hydro-Québec and contracts with suppliers, as well as the
successful completion of various permitting and regulatory
requirements.
About Mi'gmawei Mawiomi
Business Corporation
Mi'gmawei Mawiomi Business Corporation ("MMBC") is an
organization established by the three Mi'gmaq communities located
on the territory of Gespe'gewa'gi, namely, Gesgapegiag, Gespeg and
Listuguj. MMBC is the economic arm
of the three Mi'gmaq communities, and its mission is to create and
manage wealth, and initiate business opportunities in the
sustainable development of natural resources, as well as in
services and knowledge industries. Through investments,
acquisitions, and the establishment of partnerships and diverse
business ventures, MMBC's goal is also to support meaningful
improvement in employment and economic security. For more info, see
http://mmcorporation.ca/.
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 87
operating facilities with an aggregate net installed capacity of
3,694 MW (gross 4,244 MW) and an energy storage capacity of 159
MWh, including 40 hydroelectric facilities, 35 wind
facilities, 11 solar facilities and 1 battery energy storage
facility. Innergex also holds interests in 11 projects under
development with a net installed capacity of 696 MW (gross 733 MW)
and an energy storage capacity of 605 MWh, 5 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
8,701 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 successful development,
construction and financing of the projects, sources and impact of
funding, execution of non-recourse project-level financing
(including the timing and amount thereof), power purchase
agreements structure, 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 estimated project costs
and schedule, including obtainment of permits, start of
construction, work conducted and start of commercial operation for
projects, 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. Please refer to Section 5 - OUTLOOK | Strategic Plan
2020-2025 of the 2022 Annual Report regarding the assumptions used
with respect to the 2025 growth targets.
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 twelve-month periods ended December 31,
2022.
SOURCE Innergex Renewable Energy Inc.