Northland Power and Gentari Renewables Announce Closing of Hai Long Partnership

TORONTO, Dec. 28, 2023 (GLOBE NEWSWIRE) -- Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) today announced the closing of its previously announced transaction with Gentari International Renewables Pte. Ltd., a subsidiary of clean energy solutions company Gentari Sdn Bhd (“Gentari”), pursuant to which Gentari has acquired 49 per cent of Northland’s ownership in the Hai Long offshore wind project located in Taiwan. Northland now holds a 30.6 per cent ownership interest in the overall project and will continue to take the lead role in Hai Long’s construction and operation.

The strategic partnership reflects the opportunity for both companies to share in the value creation of offshore wind development, while supporting Taiwan’s transition to renewable energy. This transaction marks another significant milestone for the Hai Long offshore wind project after the recently announced debt financial close, with Gentari having contributed final equity consideration of approximately NTD $23 billion (CAD $1.0 billion) and assuming its pro rata share of credit support for the project. The proceeds from the transaction will be used to repay Northland’s previously disclosed CAD $500 million short-term corporate credit facility and fund Northland’s remaining equity in the project. As part of the broader strategic partnership with Northland in Taiwan, Gentari previously acquired 49 per cent of Northland’s ownership interest in its Taiwan Round 3 offshore wind projects in the summer of 2023.

“Northland is delighted to welcome Gentari as an official long-term partner of the Hai Long offshore wind project and believes that they will add significant value,” said Mike Crawley, President and Chief Executive Officer of Northland. “Once completed, Hai Long will be the largest offshore wind project in Taiwan and will provide much needed clean energy to the grid and significant long-term, sustainable value to Taiwan’s economy. The project financing for Hai Long close in September was the largest in Taiwan and one of the largest globally. This completes Northland’s funding plan for the project, which is a huge milestone for the organization and is a testament to the value of the Hai Long project as an asset and the attractiveness of Taiwan as a market for green investment.”