- Northland Power (NPI) has announced of sale of Iroquois Falls and Kingston Efficient Natural Gas
- 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
- The natural gas-fired generation assets played a role in decarbonizing Canada’s energy grid
- Employees from Iroquois Falls and Kingston facilities will either join the purchasing company or be repositioned within Northland
- Northland Power Inc. (NPI) is down 0.71 per cent, trading at C$42.01 at 11:48 am ET
Northland Power (NPI) has announced the sale of its Iroquois Falls and Kingston efficient natural gas-fired generating facilities to Validus Power Corp.
The two facilities, located in Ontario, have 230 megawatts (MW) combined operating capacity.
The proceeds from the sale will provide Northland with additional liquidity to help fund the development capital required for its long-term growth objectives.
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 commissioned in 1997 and 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 generate positive financial returns for shareholders.
As it focuses on building out its portfolio of renewable projects, it has no plans to make new investments inefficient 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 per cent reduction in our gas-fired generation capacity and further supports our efforts to reduce Northland’s carbon intensity,” added Crawley.
The sale aligns with Northland’s ESG objectives by helping to support carbon reduction targets through a reduction of inefficient natural gas-fired generation by 230 MW from 973 MW to 743 MW.
The sale also puts to use global decarbonization efforts of countries in which it operates by utilizing proceeds received to re-invest insignificant green energy / renewable projects.
Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources.
Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind.
Northland Power Inc. (NPI) is down 0.71 per cent, trading at C$42.01 at 11:48 am ET.
