Welcome!

News Feed Item

Northland Power Acquires Majority Equity Stake in North Sea Offshore Wind Farms From RWE Innogy

Nordsee One 332 MW offshore wind farm expected to be operational in 2017

TORONTO, ONTARIO -- (Marketwired) -- 09/04/14 -- Northland Power Inc., ("Northland") (TSX: NPI)(TSX: NPI.PR.A)(TSX: NPI.PR.C)(TSX: NPI.DB.A)(TSX: NPI.DB.B), Toronto, and RWE Innogy GmbH, Essen, have signed an agreement for Northland to acquire an 85% equity stake in three offshore wind projects, consisting of Nordsee One, a 332 megawatt (MW) project currently in advanced development, as well as Nordsee Two and Nordsee Three, which are in early stages of development. The cooperation between Northland, an independent power producer with long term experience in project development, construction, operation and financing, and RWE, a large, diversified utility with extensive technical resources, represents a new approach to ensure the effective completion of the Nordsee One project.

Nordsee Two and Nordsee Three, also being acquired under this agreement, are early stage development projects totalling approximately 670 MW. They will be developed over the next decade as offshore wind tariffs are extended and the grid infrastructure is made available.

The projects are located 40 kilometres north of Juist Island in German territorial waters, in an area of approximately 100 square kilometres, with shallow water and high wind speeds: ideal conditions for an offshore wind farm. The total estimated project cost of Nordsee One is EUR1.2 billion and, once operational, it is expected to generate over 1,300 gigawatt hours of electricity per year from 54 wind turbines, enough to meet the needs of 400,000 German households. Offshore wind development is a key feature of Germany's 'Energiewende' program, the official policy supporting renewable power generation with a stated goal for offshore wind capacity of 6,500 MW of installed capacity by 2020 and 15 GW by 2030.

Nordsee One is well advanced, having received the required permits for the wind farm, and is advancing toward achieving all of the related permit milestones. A tender process for the supply, installation and maintenance of the wind turbines for Nordsee One is ongoing and is expected to be closed soon. All other major supply and construction contracts are nearing completion. Nordsee One is entitled to a fixed feed-in tariff subsidy for approximately ten years under the German Renewable Energy Act ("EEG"). A substantial portion of the project returns are earned during the feed-in-tariff period, with the remainder of the planned returns earned from the robust and mature German wholesale electricity market.

The Nordsee One project will continue to be developed and the partners expect to reach a final investment decision and financial close in the first half of 2015, with in-water construction anticipated to begin in 2016. The project is expected to be completed by the end of 2017.

Sean Durfy, President and Chief Development Officer of Northland Power, explains: "We are excited to announce this next stage of Northland's offshore wind development program. The Nordsee One project is well advanced and increases Northland's offshore wind portfolio to 642 MW (net to Northland), with further growth potential in subsequent phases. We are very pleased to have partnered with a world class utility in RWE, who will provide expertise and manpower to support the development and construction of Nordsee One alongside Northland."

John Brace, Chief Executive Officer of Northland Power, adds: "This partnership is consistent with Northland's focussed, strategic approach to development and our commitment to delivering long term value to shareholders. Nordsee One is expected to be commercially operational by the end of 2017 and immediately thereafter should be highly accretive to free cash flow per share."

Hans Bunting, Chief Executive Officer of RWE Innogy, adds: "Today's agreement marks the first important milestone on the way to realize the Nordsee One offshore wind project. As part of RWE Innogy's capital light strategy going forward, we are going to share the capital required for offshore-projects through partnerships. Nordsee One is another good example illustrating this business model as it allows us to realize large-scale projects by bringing in strong partners. We will continue to seek partnerships for further attractive projects. Northland Power is a very experienced and reliable partner and we are delighted to be working with them to successfully realize Nordsee One together."

Conference Call

Northland Power will host a conference call on Thursday, September 4, 2014 to provide additional details on the investment in the Nordsee projects, particularly the Nordsee One wind farm. Further information will also be provided in a backgrounder available on Northland's website at www.northlandpower.ca and at our investor day on September 23rd, 2014.

Conference call details are as follows:
Date: Thursday, September 4, 2014
Start Time: 11:00 a.m. EDT
Phone Number: Toll free within North America: 1-877-256-4778 or Local: 416-
981-9035

For those unable to attend the live call, an audio recording will be available on Northland's website at (www.northlandpower.ca) from the afternoon of September 4 until September 23, 2014.

Please see Northland Power's backgrounder on projects at www.northlandpower.ca

Please see further information on RWE Innogy at www.rweinnogy.com

About Northland Power

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 1,335 MW of operating generating capacity, with an additional 650 MW (410 MW net to Northland) of generating capacity currently in construction, and another 124 MW (66 MW net to Northland) of projects with awarded power contracts. The above includes Northland's majority equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea currently in construction. Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

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.

About RWE

RWE is one of Europe's five leading electricity and gas companies. It is active in the generation, trading, distribution and supply of electricity and gas. Around 63,000 employees supply over 16 million electricity customers and more than seven million gas customers with energy.

RWE Innogy pools the renewable energy expertise and power plants of the RWE Group. The company plans, builds and operates facilities generating power from renewable energies. Alone and with partners, RWE Innogy is currently developing European offshore wind projects with an overall generation capacity of approx. 7,000 MW. Two projects with a total capacity of some 900 MW are under construction: Once complete, the Nordsee Ost offshore wind farm in the German north sea will have an installed capacity of some 295 MW and supply the equivalent of some 300,000 households with electricity per year. The Gwynt y Mor wind farm is a joint venture project of RWE Innogy, Munich municipal utility and Siemens and is being built in Liverpool Bay, off the North Wales coast. Once complete, Gwynt y Mor will have an installed capacity of 576 MW. Presently, RWE Innogy is operating offshore wind farms with a capacity of approx. 1,000 MW.

FORWARD-LOOKING STATEMENTS

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 plans for raising capital. These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including 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, operational risks, foreign exchange rates, regulatory risks, 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 2013 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 September 4, 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.

Contacts:
Northland Power Inc.
Sarah Charuk
T: +1 647 288 1105
E: [email protected]

Northland Power Inc.
Adam Beaumont
T: +1 647 288 1929
E: [email protected]

RWE Innogy
Barbara Woydtke
T: +49 201 12 14073
M: +49 173 2904651
E: [email protected]

RWE Innogy
Jagna Jera
T: +49 201 12 14071
M: +49 162 2546238
E: [email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...