|By Marketwired .||
|September 4, 2014 07:12 AM EDT||
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."
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.
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.
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.
Northland Power Inc.
T: +1 647 288 1105
E: [email protected]
Northland Power Inc.
T: +1 647 288 1929
E: [email protected]
T: +49 201 12 14073
M: +49 173 2904651
E: [email protected]
T: +49 201 12 14071
M: +49 162 2546238
E: [email protected]
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
Jul. 7, 2015 03:00 PM EDT Reads: 2,325
Jul. 7, 2015 03:00 PM EDT Reads: 2,675
Enterprises are turning to the hybrid cloud to drive greater scalability and cost-effectiveness. But enterprises should beware as the definition of “policy” varies wildly. Some say it’s the ability to control the resources apps’ use or where the apps run. Others view policy as governing the permissions and delivering security. Policy is all of that and more. In his session at 16th Cloud Expo, Derek Collison, founder and CEO of Apcera, explained what policy is, he showed how policy should be arch...
Jul. 7, 2015 02:51 PM EDT Reads: 309
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
Jul. 7, 2015 02:45 PM EDT Reads: 1,597
Jul. 7, 2015 02:45 PM EDT Reads: 493
Jul. 7, 2015 02:45 PM EDT Reads: 2,641
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Jul. 7, 2015 02:45 PM EDT Reads: 2,053
Jul. 7, 2015 02:30 PM EDT Reads: 2,183
Jul. 7, 2015 02:30 PM EDT Reads: 2,308
Jul. 7, 2015 02:30 PM EDT Reads: 1,513
Jul. 7, 2015 02:15 PM EDT Reads: 2,149
Jul. 7, 2015 02:15 PM EDT Reads: 2,447
Jul. 7, 2015 02:00 PM EDT Reads: 2,158
Jul. 7, 2015 01:45 PM EDT Reads: 2,440
Jul. 7, 2015 01:30 PM EDT Reads: 2,725