Final Investment Decision Reached and Construction to Commence Shortly
TORONTO, May 07, 2019 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland") (TSX: NPI) today announces that a final investment decision (“FID”) has been reached on its La Lucha solar project in the State of Durango, Mexico. Northland owns 100% of the 130 megawatts solar project which will have a total capital cost of approximately CAD $190 million.
Recent Mexican energy reforms have resulted in strong market fundamentals and created bilateral power generation and marketing opportunities, backed by growing industrial demand for power and renewable attributes. La Lucha will advance to construction while Northland’s experienced development team in Mexico continues to negotiate bilateral power contracts with a range of local commercial and industrial offtakers in the market.
“The robust fundamentals of Mexico’s power markets give us the confidence to build La Lucha as our first attractive investment opportunity in the country,” said Javier Chavarria, Managing Director, Development for Latin America. "There is significant interest within the Mexican industrial sector to meet some of their energy needs through contracts linked to renewable power facilities like La Lucha."
Northland originated the La Lucha project and has obtained all major permits required for construction of the facility. Construction activities will commence shortly, with project completion expected in the second half of 2020. Northland will initially fund La Lucha through a combination of cash and its corporate credit facility. Subsequently, Northland expects to utilize non-recourse project financing to finance La Lucha once it secures offtake agreements, closer to project completion.
“Today’s decision represents an exciting step in the evolution of Northland’s generation business with our first project focused on the commercial and industrial customer segment,” noted Mike Crawley, President and CEO of Northland. "La Lucha is the first investment opportunity to come out of our regional development offices located in Toronto, Houston, London, Seoul and soon, Tokyo. These offices are designed to put knowledgeable, local and experienced development teams on the ground in our identified growth markets. This also represents our first step towards moving closer to the end customer in select markets to drive more accretive growth."
ABOUT NORTHLAND POWER
Northland Power 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 an economic interest in 2,429 MW (net 2,014 MW) of operating generating capacity and 399 MW of generating capacity under construction, representing the Deutsche Bucht offshore wind project in the North Sea and the La Lucha solar project in Mexico. In addition, the Company has a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan.
Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C and NPI.DB.C, respectively.
This release contains certain forward-looking statements. 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 Northland’s expectations or ability to complete any future offerings of securities. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements. 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 2018 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 northlandpower.com. 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 date of release. 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:
Wassem Khalil, Senior Director, Investor Relations & Strategy
+1 (647) 288-1019