Northland Power Tops Up Majority Equity Stake in 600 MW North Sea Offshore Wind
Farm to 60%
TORONTO, ONTARIO -- (Marketwired) -- 01/29/14 -- 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
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".
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.
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.
Director of Communications
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