Northland Power on Jan. 12 offered updates on developments at certain of its Canadian power projects, with additional detail to be made available upon release of Northland’s consolidated 2014 results after market close on Feb. 18.
- Kirkland Lake Generating Station (Ontario, 132 MW) – Kirkland Lake Power Corp. (KLPC), an affiliate of Northland, has signed a new 20-year contract with the Ontario Power Authority (OPA) for the 30-MW gas peaking portion of the generating station. The existing peaking contract was due to expire in August 2015. The new contract provides stable revenues to KLPC until August 2035. Negotiations are continuing with the Ontario Electricity Financial Corp. (OEFC) for the baseload, gas-fueled portion of the Kirkland Lake facility, which has pricing provisions expiring in August 2015.
- Cochrane Generating Station (Ontario, 42 MW) – The OEFC and Cochrane Power Corp. (CPC), an affiliate of Northland, have agreed to extend CPC’s existing revenue contract to May 2015 from its current expiration in January 2015. The extension provides additional time for CPC to negotiate a new long-term contract with the IESO for CPC’s natural gas and biomass facility.
- Phase III Ground-Mounted Solar Projects (Ontario, 40 MW) – Northland has signed a purchase and sale agreement with Taykwa Tagamou Nation and Wahgoshig First Nation which, once closed, will provide those First Nations with a combined 37.5% equity interest in Northland’s four Phase III solar projects in northern Ontario. The total consideration for the equity interest is approximately C$45.6m, approximately a third of which will be a vendor take-back loan. These are the final four projects in Northland’s 13 ground-mounted solar project portfolio that remain under construction. Closing of the sale is contingent on certain conditions and receipt of third-party approvals. In December 2014, Northland Power terminated its engineering, procurement and construction contract with H.B. White Canada Corp. related to the construction of the four 10-MW Phase III solar projects. Ganotec Inc., a subsidiary of Peter Kiewit Sons Co. Ltd., has been engaged to assist with the completion of the projects. Northland expects the overall project completion schedule to be met, although the final project costs are being reviewed and may increase from the C$246m previously disclosed.
- Frampton Wind Project (Quebec, 24 MW) – Northland has signed an agreement to sell its 66.7% interest in the advanced stage development project located in Frampton, Quebec, to Boralex Inc. Total consideration for the interest is about C$11.5m. Completion of the sale is conditional on the achievement of certain conditions and receipt of third party approvals. Desjardins Capital Markets acted as financial advisor to Northland on the transaction. The sale will enable Northland to realize the project’s economic returns at an earlier stage and focus its resources on other larger scale development and construction projects. Northland said it remains committed to maintaining a strong presence in Quebec’s renewable energy industry.
“Overall, Northland’s business strategy continues to proceed according to our expectations,” said John Brace, Northland’s Chief Executive Officer. “These developments are in line with our focus on delivering projects on time and on budget, and continuing to ensure our operating projects deliver reliable, robust returns, while pursuing additional growth opportunities in Canada and abroad.”
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 1,345 MW of operating generating capacity; 640 MW (400 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea near the Netherlands; and 456 MW (348 MW net to Northland) of projects with awarded power contracts under advanced development, including an 85% equity stake in Nordsee One, a 332 MW (282 MW net to Northland) offshore wind project in the North Sea near Germany.
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, NPI.DB.A and NPI.DB.B, respectively.