Announcement Highlights
- Northland closes its second battery storage financing, reflecting the Company's growing expertise in battery storage technology.
- The project is located in Cypress County, Alberta and is preparing to begin construction.
- Jurassic BESS will be Alberta's largest battery energy storage system once completed.
Northland Power Inc. ("Northland" or the "Company") (TSX: NPI) today (April 9) announced that the Jurassic Battery Energy Storage System project ("Jurassic BESS" or the "project") in southern Alberta has achieved financial close, securing all necessary financing as it prepares to begin construction.
Jurassic BESS is an 80 MW, 2-hour (160 MWh) battery storage system that is part of Northland's growth pipeline in Alberta. The project recently signed construction contracts and will benefit from a 15-year fixed price contract for capacity. The project is expected to reach commercial operation in late 2026.
"Building on the success of our Oneida Battery Storage Project, which is nearing operations, today's announcement represents another great milestone for Northland Power. We are delivering needed battery storage as one of the ways we provide energy solutions in Canada and around the world," said Christine Healy, President and Chief Executive Officer. "This BESS project will enhance the stability and reliability of Alberta's energy grid, expand our footprint in Canada, and diversify our asset base. It highlights the growth potential of our multi-technology approach."
The project cost is approximately $120 million. Construction costs will be funded by non-recourse project-level financing, existing cash and available liquidity. Once fully operational, Jurassic BESS is expected to contribute approximately $15 million of annual Adjusted EBITDA.
ABOUT NORTHLAND POWER
Northland Power is a Canadian-based global power producer dedicated to accelerating the global energy transition. Founded in 1987, with almost four decades of experience, Northland has a long history of developing, owning and operating a diversified mix of energy infrastructure assets including offshore and onshore wind, solar, battery energy storage, and natural gas. Northland also supplies energy through a regulated utility.
Headquartered in Toronto, Canada, with global offices in seven countries, Northland owns or has an economic interest in 3.2 GW of gross operating generating capacity, 2.4 GW under construction and a significant inventory of early to mid-stage development opportunities encompassing approximately 10 GW of potential capacity.
Publicly traded since 1997, Northland's Common Shares, Series 1 and Series 2 Preferred Shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.
NON-IFRS FINANCIAL MEASURES
This press release includes references to the Company's adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA"), Adjusted Free Cash Flow, Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards ("IFRS"), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland's share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland's results of operations from management's perspective. Management believes that Northland's non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.
FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that 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. Northland's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects," "anticipates," "plans," "predicts," "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 future Adjusted EBITDA, the timing of commencement of construction activities and attainment of commercial operations at the Jurassic BESS project, the expected generating capacity of the project, forecasts as to overall project costs, investments or financings and the timing thereof, future funding requirements, and the future operations of the project, all of which may differ from the expectations stated herein.
These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management's current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, as well as other factors, estimates and assumptions 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 are described in the "Risks Factors" section of Northland's Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2024, which can be found at www.sedarplus.ca under Northland's profile and on Northland's website at northlandpower.com.
Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations; however, there may be other factors that cause actual results to differ materially from such expectations. 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, and Northland cautions you not to place undue reliance upon any such forward-looking statements.
The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. 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.
For further information, please contact:
Dario Neimarlija, Vice President, FP&A and Investor Relations
647-288-1019
investorrelations@northlandpower.com
Victor Gravili,
Head of Global Brand & Integrated Communications
647-288-1105
communications@northlandpower.com
