Northland Power Announces Signing of Corporate Power Purchase Agreement for Hai Long 2B and 3 Offshore Wind Project

TORONTO, July 11, 2022 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) is pleased to announce the signing of a Corporate Power Purchase Agreement (CPPA) for production from its Hai Long offshore wind project in Taiwan secured under auction. The agreement is with an investment grade counterparty (S&P: AA-) and covers 100 percent of the power generated from Hai Long 2B and 3, which have a combined capacity of 744-megawatts (MW). The agreement is for a 20-year period at a fixed-price, commencing once Hai Long reaches full commercial operations in late 2026.

Hai Long consists of three offshore wind sites being developed as a single project with a combined gross capacity of 1,044 MW. In addition to Hai Long 2B and 3, the project includes Hai Long 2A (300 MW). Hai Long 2A entered a separate 20-year power PPA with Taipower in 2019 under a Feed-in-Tariff allocation. Northland has a 60 percent interest in Hai Long.

Under the terms of the CPPA, Hai Long 2B and 3 will receive a fixed price for delivering power and Taiwan Renewable Energy Certificates (T-RECs) during the 20-year contract period. In 2018, the projects were allocated grid capacity for connection under Taiwan’s fixed auction program and awarded PPAs with Taiwan Power Company (Taipower). The contracted price under the CPPA is more favourable than the fixed auction rate originally awarded in 2018. The improved rate enhances the economics of the project and is a key accomplishment as Northland progresses Hai Long towards securing non-recourse project level debt financing and financial close later this year. The PPAs with Taipower are not affected by the signing of the CPPA and provide a backstop to the CPPA.

Mike Crawley, President and Chief Executive Officer of Northland noted, “Today’s announcement is a substantial milestone for Northland and for our partners in the Hai Long project. This agreement marks Northland’s first signed corporate PPA and aligns with our commitment to supporting the global decarbonization efforts by governments and corporate entities through the development of renewable energy. In particular, the development of Hai Long will support Taiwan’s transition to renewable energy.”

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 14 GW of potential capacity.

Publicly traded since 1997, Northland's common shares, Series 1, Series 2 and Series 3 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B and NPI.PR.C, respectively.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements including certain future oriented financial information 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. 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,” “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 Northland’s expectations for guidance, the completion of construction, attainment of commercial operations which may differ from expectations stated herein, 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 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 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 and Free Cash Flow, 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, interest rate and refinancing risks, liquidity risk, 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 2021 Annual Information Form, which can be found at www.sedar.com under Northland’s profile and on Northland’s website at northlandpower.com.

The forward-looking statements contained in this release 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:

Mr. Wassem Khalil, Senior Director, Investor Relations
647-288-1019
[email protected]