Innergex & MMBC's Joint Wind Project is Selected in the Request for Proposal by Hydro-Québec

Source: 3/15/2023, Location: North America

• The 102 MW Mesgi’g Ugju’s’n 2 wind facility in the MRC d’Avignon will be covered by a 30-year “takeor-pay” power purchase agreement indexed to inflation expected to be concluded with Hydro-Québec
• Second project led by a 50-50 partnership between the three Mi'gmaq communities in Quebec and Innergex, following the success of the 150 MW Mesgi’g Ugju’s’n wind facility commissioned in 2016
• The partnership will bring economic benefits to the local communities through employment opportunities and a social commitment fund
• Will benefit from good knowledge of the land and wind resource and maximize the use of existing roads, facilities and interconnections, resulting in a minimized environmental impact

Innergex Renewable Energy Inc. (“Innergex” or the “Corporation”) and Mi'gmawei Mawiomi Business Corporation (“MMBC”) are pleased to announce that their 102 MW Mesgi’g Ugju’s’n 2 (“MU2”) wind project has been selected in Hydro-Québec’s request for proposals. The project, which will be located in the MRC d'Avignon, is an extension to the existing 150 MW Mesgi’g Ugju’s’n wind facility, and a result of a 50-50 partnership between Innergex and the three Mi'gmaq communities in Quebec – Gesgapegiag, Gespeg and Listuguj – represented by MMBC. Its commissioning is scheduled in 2026, and the power purchase agreement, to be concluded with Hydro-Québec (AA- rating by S&P), is expected to be structured as a 30-year “take-or-pay” contract indexed to inflation.

“We are thrilled to continue our partnership with MMBC on this second wind project as we work very well together and have excellent relationships with the local communities,” said Michel Letellier, President and Chief Executive Officer of Innergex. “This project is a good example of Innergex’s responsible growth that balances people, our planet and shared prosperity. The partnership will bring direct social and economic benefits to the region, a feature which resulted in very positive reactions during public information meetings held last year. In addition, since the project plans to maximize the use of existing roads, facilities and interconnections of Mesgi’g Ugju’s’n, we expect the environmental impact to be minimized.”

“Our success in this request for proposals shows our determination to sustainably harness our natural resources while supporting our communities with structuring projects, creating jobs, and allowing us to diversify our sources of income,” said Frédéric Vicaire, Chief Executive Officer of MMBC. “The wind power industry is aligned with our interest to contribute to the decarbonization effort that the entire planet must undertake. We are proud to continue building our Nation while being a committed player in this effort. This project will also generate significant benefits for our communities. As with the existing Mesgi'g Ugju's'n facility, MMBC will receive and manage half of the profits from this second phase for community development projects.”

In addition, the project should provide an annual financial contribution and set up a social commitment fund to support local development initiatives with local municipalities. The project will contribute to support the wind industry supply chain in the Gaspé Peninsula and Quebec.

The construction of the Mesgi'g Ugju's'n 2 wind farm will involve the participation of local and regional businesses. The construction alone will require the creation of approximately 200 jobs during its peak period, while long-term, permanent and qualified jobs will also be created during operations.

Interconnection costs and collector system will be reimbursed by Hydro-Québec at the commissioning of the facility. Project costs are estimated at approximately $277.4 million which are expected to be financed with approximately 75% to 80% of long-term, non-recourse project debt and the remaining will be funded by sponsor equity to be shared equally among the partners.

This project is subject to the execution of agreements with Hydro-Québec and contracts with suppliers, as well as the successful completion of various permitting and regulatory requirements.

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