Northland Power Acquires Rights to Majority Equity Stake in 600 MW North Sea Offshore Wind Farm

Northland Power Acquires Rights to Majority Equity Stake in 600 MW North Sea 
Offshore Wind Farm 
TORONTO, ONTARIO -- (Marketwired) -- 08/01/13 -- Northland Power Inc.
today announced it has entered into agreements for the rights to
acquire a majority equity stake in Gemini, a 600MW offshore wind
project currently in advanced development. Gemini is located 85
kilometres off the coast of the Netherlands in the North Sea, which
combines one of the strongest and most reliable wind resources in the
world with favourable sea bed conditions.  
Northland has entered into agreements with a highly qualified team of
offshore developers and contractors. The team includes Typhoon
Offshore B.V., an experienced Netherlands-based developer of offshore
wind projects in the North Sea; Siemens, the world's leading supplier
of offshore wind turbines (via Siemens Financial Services); Van Oord
Dredging and Marine Contractors B.V. (Van Oord), a leading
Netherlands-based international marine contractor with an excellent
track record in offshore wind farm construction and a leading
position as EPC contractor in offshore wind projects; and HVC N.V., a
joint venture of 48 Dutch municipalities and six water regulatory
In 2010, Gemini was granted two 15-year agreements with the
Government of The Netherlands through a competitive tender under the
government's Sustainable Energy Production Incentive (Stimulering
Duurzame Energieproductie, "SDE") program. These agreements provide a
premium price for the large majority of the wind farm's output for 15
years and incorporate mechanisms that reduce revenue exposure to wind
production volatility.  
Northland intends to actively participate in Project Gemini by taking
a lead role during the remainder of development as well as
construction and operations. Northland's final investment is subject
to meeting conditions for closing, formal documentation and the
approval of Northland's Board of Directors. Siemens' final investment
is also subject to approval by their Board of Directors. Northland
has appointed a Committee of its Board to oversee Northland's
involvement in the project consisting of James C. Temerty, Linda L.
Bertoldi, Sean Durfy, Pierre R. Gloutney. Upon closing, Northland
will acquire a 55% interest in Gemini.  
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.  
As nations around the world increase their use of renewable energy
sources, offshore wind has become one of the fastest growing sectors.
With offshore wind projects also underway in several other
jurisdictions, including the United Kingdom, Japan, and the U.S., it
is projected (
shore_Wind_Study_20130506.pdf)by Roland Berger to become a $177 billion global 
market by 2020. 
Once operational, Gemini will be one of the largest wind farms in the
world, and will produce approximately 2.5TWh annually - enough
electricity to power more than 785,000 households. According to a
July 2013 report (
tions/reports/Deep_Water.pdf)by the EWEA, offshore wind power in the North Sea 
alone has the
potential to meet the European Union's electricity consumption four
times over and the technology enjoys significant support, given its
reputation for being a clean, renewable, efficient and safe power
Gemini is well advanced, having received its major environmental
permits, and is close to finalizing its major contracts for turbine
supply and balance of plant engineering, construction and
procurement. The project will be constructed under a two-contract
strategy involving Siemens and Van Oord to reduce interface risks.
Siemens Wind Power was selected as the preferred supplier for the
wind turbines; it is intended that they will install, and then
operate and maintain them, under a long-term service contract. Van
Oord will be responsible for supply and installation of the wind
turbine foundations and the entire electrical infrastructure,
including the offshore high voltage substation and electrical cable,
as well as the transmission infrastructure and installation of the
"Today's announcement underscores Northland's commitment to fostering
sustainable growth and delivering steady returns to our
shareholders," said James Temerty, Chairman of Northland Power's
Board of Directors. "Northland's entry into the burgeoning offshore
wind sector is consistent with our strategy of developing and
investing in opportunities with long-term secured revenue contracts
with creditworthy counterparties that yield attractive rates of
Project Gemini's total cost is projected to be $3.8 billion, and is
expected to be financed with a combination of non-recourse project
debt, mezzanine financing and equity from the consortium. Northland's
total net investment will be approximately $400 million, consisting
of mezzanine and equity financing, in addition to credit support in
the amount of approximately $32 million to secure the project revenue
SDE agreements with the Dutch government.  
Construction of Gemini is expected to start in late 2014; it is
expected to reach commercial operations in 2017. The project is
expected to be accretive on a free cash flow per share basis upon its
completion, and provide project returns commensurate with Northland's
investment criteria. 
"As offshore wind becomes a more significant contributor to meeting
the world's need for renewable energy, Northland's involvement in
Gemini will position us very well for future opportunities and
continued growth, noted John Brace, President and CEO of Northland
Power. "This project provides an exceptional opportunity for
Northland to integrate offshore wind into its diverse portfolio of
clean and green technologies, while helping the Netherlands to
achieve its renewable energy targets. We are already impressed by the
high degree of support received from the Dutch government and the
expertise of our partners. Together, we look forward to harnessing
the enormous power of offshore wind, while helping to further advance
the offshore wind sector."  
Please note: All amounts expressed herein are in Canadian Dollars,
unless otherwise indicated. A 1.35 Canadian Dollar to the Euro
exchange rate is used herein to establish equivalent amounts. 
Northland Power is an independent power producer founded in 1987, and
publicly traded since 1997. Northland produces '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 1,309 MW of
operating generating capacity, with an additional 100 MW of
generating capacity currently in construction, and another 200 MW of
wind, solar and run-of-river hydro projects with awarded power
contracts. Northland's cash flows are diversified over five
geographically separate regions and regulatory jurisdictions in
Canada, Germany and the United States. Northland Power'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. 
Typhoon Offshore is an Independent Energy Innovator with a unique
expertise in offshore wind. Typhoon Offshore acquires permitted North
Sea offshore wind projects and arranges the contracting, structuring
and financing to bring the project from paper to actual electricity
generating assets. Typhoon Offshore's team has an unprecedented track
record in successfully developing, contracting, structuring and
financing renewable energy projects in general (1GW to date) and
offshore wind in particular: the team was involved in the financing
of Princess Amalia (120MW) and Belwind (165MW). The Typhoon Offshore
team is currently working on offshore wind farm Gemini.  
The Financial Services unit of Siemens (SFS) is an international
provider of business-to-business financial solutions. SFS helps
facilitate investments, providing commercial finance, project and
structured finance with specific asset expertise in the energy,
healthcare, industry, and infrastructure & cities markets. Employing
more than 2,900 employees worldwide, SFS supports Siemens as well as
other companies with their capital needs and acts as an expert
manager of financial risks within the Siemens Company. By leveraging
its financing expertise and its industrial know-how SFS creates value
for its customers and helps them strengthen their competitiveness.
Beyond that, financing is key in creating trust for technological
solutions - and SFS acts as a key enabler when it comes to the market
launch. As of September 30, 2012, the total assets of SFS amounted to
EUR17.4 billion. For more information, visit: 
Van Oord is a leading international contractor specialising in
dredging, marine engineering and offshore projects (oil, gas and
wind). Marine ingenuity is what sets Van Oord apart. Van Oord is a
family-owned business and employs about 4,500 professionals
worldwide. The company has been involved in such noteworthy projects
as Palm Jumeirah in Dubai and the port of Rotterdam's Maasvlakte 2
expansion. As an EPC (Engineering, Procurement, Construction)
contractor, Van Oord is rapidly expanding its track record in the
offshore wind sector in Northwest Europe, including projects such as
Princess Amalia (120 MW), Belwind (165 MW), Teesside (62 MW) and
Luchterduinen (129 MW). A new offshore wind transport and
installation vessel, Aeolus, will become operational late 2013, and
will be used for Gemini. 
HVC specializes in sustainable raw materials and energy and is
located in the Netherlands. The company operates two waste-to-energy
plants, a biomass-fired power station and two digesters, in Alkmaar,
Dordrecht, Middenmeer and Zwolle, the Netherlands. HVC is owned by 48
Dutch municipalities and six water regulatory authorities. The
company converts residual wastes and biomass to electricity, heat and
gas. The electricity generated by HVS is supplied to the
shareholders. The heat is supplied to businesses and dwellings in the
vicinity of the plants. 
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 under Northland's profile and on Northland's
website 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 August 1, 2013. 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 Charuk
Director, Communications
Press spacebar to pause and continue. Press esc to stop.