Northland Power Inc. announced the sale of its Iroquois Falls and Kingston efficient natural gas-fired generating facilities (the “facilities”), both located in Ontario, to Validus Power Corp. The two facilities have a combined operating capacity of 230 megawatts (MW). The proceeds from the sale will provide Northland with additional liquidity to help fund the development capital required for its long-term growth objectives.
About Iroquois Falls and Kingston Facilities:
• Iroquois Falls is a 120 MW natural-gas-fired combined-cycle generating facility that achieved commercial operations in 1997 and operated under a 25-year Power Purchase Agreement (PPA) with the Ontario System Operator that expired at the end of 2021.
• Kingston is a 110 MW natural-gas-fired combined-cycle generating facility that was also commissioned in 1997 and had operated under a 20-year PPA with the Ontario System Operator, which expired in 2017.
Northland’s efficient natural gas-fired generation assets played a role in decarbonizing Canada’s energy grid and helping to diversify the country’s energy mix away from coal. As Northland evolves, its strategic focus shifts to seizing opportunities within renewables to support global decarbonization efforts and to generate positive financial returns for shareholders. As the Company focuses on building out its portfolio of renewable projects, it has no plans to make new investments in efficient natural gas assets. The sale of these two facilities aligns with Northland’s growth and sustainability strategy. As a result of this transaction, employees from Iroquois Falls and Kingston facilities will either join the purchasing company or be repositioned within Northland.
“As a global developer focused on advancing the development of renewable energy, the sale of the Iroquois Falls and Kingston facilities aligns with this strategy,” said Mike Crawley, Northland’s President and Chief Executive Officer. “Northland’s future growth will come from offshore wind, onshore renewables and other decarbonizing assets and our focus has been on these asset classes. This transaction marks an important step in the evolution of our business, representing a 21% reduction in our gas-fired generation capacity and further supports our efforts to reduce Northland’s carbon intensity. I want to acknowledge and thank the employees at these facilities for their contributions to Northland’s success and wish them all the best.”
The sale aligns with Northland’s ESG objectives by helping to support:
• Carbon reduction targets through a reduction in efficient natural gas-fired generation by 230 MW from 973 MW to 743 MW
• Helping the company achieve its stated 2030 targets
Global decarbonization efforts of countries in which the Company operates by utilizing proceeds received to re-invest in significant green energy / renewable projects
