Northland Power Inc. (“Northland Power”) announces the successful
execution of an Energy Storage Facility Agreement (ESFA) with the
Independent Electricity System Operator (“IESO”) for the Oneida
Energy Storage Project (“the Project”). The Project will benefit
from a 20-year fixed price contract for revenue payments with the
IESO in Ontario for the majority of the capacity from the project.
The remaining capacity will earn market revenues through sales into
the wholesale market. Execution of the ESFA follows the issuance of
a Ministerial Directive to enable the Project to proceed, granted
by the Government of Ontario.
The news builds on last week’s announcement
confirming Northland’s investment in the Project and marks a
significant milestone for advancing its development in partnership
with NRStor Inc. (NRStor) and the Six Nations of the Grand River
Development Corporation (SNGRDC). Northland is a majority owner in
the Project and will lead its construction, financing, and
operation.
The Project has finalized a Battery Supply
Agreement and a long-term Service Agreement with Tesla Inc. for the
supply of key components and services, as well as an EPC agreement
with Aecon Group Inc. for designing, engineering and constructing
the facility.
The Canada Infrastructure Bank (CIB) has played
a key role supporting project development and is collaborating with
the Oneida Energy Storage Project on an investment agreement. In
addition to the CIB, Northland and its partners are also working
with commercial banks to complete financing of the project.
Furthermore, Natural Resources Canada has provided $50 million in
funding from the Smart Renewables and Electrification Pathways
program, recognizing that the Project will reduce greenhouse gas
emissions by enabling increased renewable energy capacity and
providing essential grid services. The Project will contribute to
Canada’s ongoing transition to a net-zero economy by 2050 as well
as Canada’s commitment to achieving a 100-percent net-zero-emitting
electricity system by 2035.
The Project is the largest battery energy
storage project in Canada and amongst the largest in the world. It
will deliver critical capacity and improved efficiency to Ontario’s
energy grid and will double the amount of energy storage resources
on Ontario’s clean electricity grid from approximately 225 MW today
to approximately 475 MW when the Project is completed in 2025.
“The Oneida Energy Storage Project is a
milestone for Ontario’s burgeoning energy storage sector. For
Northland, this project marks our first storage investment. As
trusted and experienced operators in Canada, the opportunity to
construct and operate Canada’s largest battery energy storage
project holds special significance,” said Mike Crawley, President
and CEO of Northland Power. “We recognize the Government of Canada
and the Government of Ontario for their continued support of Oneida
as part of their broader vision to ensure reliable and affordable
clean energy for Canadians. We’re excited to be a part of this
growth and look forward to continuing to work in partnership with
NRStor and the Six Nations of the Grand River Development
Corporation.”
About Northland Power
Northland Power is a global power producer
dedicated to helping the clean energy transition by producing
electricity from clean renewable resources. Founded in 1987,
Northland has a long history of developing, building, owning and
operating clean and green power infrastructure assets and is a
global leader in offshore wind. In addition, Northland owns and
manages a diversified generation mix including onshore renewables,
efficient natural gas energy, as well as supplying energy through a
regulated utility.
Headquartered in Toronto, Canada, with global
offices in eight countries, Northland owns or has an economic
interest in 3.0 GW (net 2.6 GW) of operating capacity. The Company
also has a significant inventory of projects in construction and in
various stages of development encompassing over 20 GW of potential
capacity.
Publicly traded since 1997, Northland's common
shares, Series 1 and Series 2 preferred shares trade on the Toronto
Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B
respectively.
FORWARD-LOOKING STATEMENTS
This press release contains statements that
constitute forward-looking information within the meaning of
applicable securities laws (“forward-looking statements”) that 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.
Northland’s actual results could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, the events anticipated by the forward-looking
statements may or may not transpire or occur. Forward-looking
statements include statements that are not historical facts and are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as “expects,” “anticipates,”
“plans,” “predicts,” “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 Adjusted
EBITDA, Adjusted Free Cash Flow and Free Cash Flow, respective per
share amounts, dividend payments and dividend payout ratios,
guidance, the timing for the completion of construction,
acquisitions, dispositions, investments or financings, attainment
of commercial operations, the potential for future production from
project pipelines, cost and output of development projects,
litigation claims, plans for raising capital, and the future
operations, business, financial condition, financial results,
priorities, ongoing objectives, strategies and the 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 and its perception of historical trends, current conditions
and expected future developments, as well as other factors,
estimates and assumptions 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 include, but are not limited to, risks
associated with sales contracts, Northland’s reliance on the
performance of its offshore wind facilities at Gemini, Nordsee One
and Deutsche Bucht for approximately 50% of its Adjusted EBITDA,
counterparty risks, contractual operating performance, variability
of sales from generating facilities powered by intermittent
renewable resources, offshore wind concentration, natural gas and
power market risks, operational risks, recovery of utility
operating costs, Northland’s ability to resolve issues/delays with
the relevant regulatory and/or government authorities, permitting,
construction risks, project development risks, acquisition risks,
financing risks, disposition and joint-venture risks, interest rate
and refinancing risks, liquidity risk, inflation risks, impact of
regional or global conflicts, credit rating risk, currency
fluctuation risk, variability of cash flow and potential impact on
dividends, taxation, natural events, environmental risks, health
and worker safety risks, market compliance risk, government
regulations and policy risks, utility rate regulation risks,
international activities, reliance on information technology,
labour relations, reputational risk, insurance risk, risks relating
to co-ownership, bribery and corruption risk, legal contingencies,
and the other factors described in the “Risks Factors” section of
Northland’s Management’s Discussion and Analysis and Annual
Information Form for the year ended December 31, 2021, which can be
found at www.sedar.com under Northland’s profile and on Northland’s
website at northlandpower.com. Northland has attempted to identify
important factors that could cause actual results to materially
differ from current expectations, however, there may be other
factors that cause actual results to differ materially from such
expectations. 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 and Northland cautions you not to place undue
reliance upon any such forward-looking statements.
The forward-looking statements contained in this
release are, unless otherwise indicated, stated as of the date
hereof and are based on assumptions that were considered reasonable
as of the date hereof. 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.
For further information, please
contact: |
|
|
|
Investor Relations |
|
Corporate Communications
|
|
|
|
Wassem Khalil, Senior Director, Investor Relations |
|
Jessica Kitchen, Manager, Global Communications |
647-288-1019 |
|
905-302-2714 |
investorrelations@northlandpower.com |
|
jessica.kitchen@northlandpower.com |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f4783beb-b3b9-45b7-9d96-519f823e1361
Northland Power (TSX:NPI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Northland Power (TSX:NPI)
Historical Stock Chart
From Jul 2023 to Jul 2024