- Signature of a 30-year "take-or-pay" power purchase agreement
indexed to 30% inflation with Hydro-Québec for the electricity to
be produced by the Mesgi'g Ugju's'n 2 wind project
- Marks a significant milestone in the progression of the
project
- 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
LONGUEUIL, QC, May 31, 2023
/CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex"
or the "Corporation") and Mi'gmawei Mawiomi Business Corporation
("MMBC") are pleased to announce the signature of a 30-year
"take-or-pay" power purchase agreement indexed to 30% inflation
with Hydro-Québec for the electricity to be produced by Mesgi'g
Ugju's'n 2 ("MU2").
Mesgi'g Ugju's'n 2 is a 102 MW wind project to be located in the
MRC d'Avignon and an extension to the existing 150 MW Mesgi'g
Ugju's'n wind facility commissioned in 2016. MU2 is the result of a
50-50 renewed partnership between Innergex and the three Mi'gmaq
communities in Quebec –
Gesgapegiag, Gespeg and Listuguj –
represented by MMBC. Its commissioning is scheduled in 2026.
"The signing of this long-term power purchase agreement with
Hydro-Québec enables the project to move ahead by guaranteeing
revenues over the span of 30 years," said Michel Letellier, President and Chief Executive
Officer of Innergex. "With the new financial initiatives announced
by the Government of Canada to
foster a clean economy, we expect the Canadian market to continue
to bloom with exciting new opportunities for renewable energy. With
projects like Mesgi'g Ugju's'n 2, local communities, and especially
Indigenous communities, are bound to benefit from this incredible
future growth, as renewable energy projects are known to bring
direct social and economic benefits to the region in which they are
developed."
"This milestone in the development of Mesgi'g Ugju's'n 2
guarantees sustainability by securing recurrent revenues and jobs
for our communities for the next 30 years," said Frédéric Vicaire,
Chief Executive Officer of MMBC. "Through job creation or
self-generated income, our partnership with Innergex aims to
produce wealth. It demonstrates our determination to follow a clear
path in the sustainable exploitation of our natural resources and
the production of renewable energies, thus being a leader in the
fight against climate change. Our three communities are proud of
this achievement, and hope to inspire other First Nations across
Canada to develop similar
initiatives."
On March 15, 2023, the MU2 wind
project was selected in Hydro-Québec's request for proposals. The
project will contribute to support the wind industry supply chain
in the Gaspé Peninsula and Quebec.
MU2 should also provide an annual financial contribution and set up
a social commitment fund to support development initiatives with
local municipalities.
The construction of the MU2 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.
About Mi'gmawei Mawiomi Business Corporation
Mi'gmawei Mawiomi Business Corporation ("MMBC") is an
organization established by the three Mi'gmaq communities located
on the territory of Gespe'gewa'gi, namely, Gesgapegiag, Gespeg and
Listuguj. MMBC is the economic arm
of the three Mi'gmaq communities, and its mission is to create and
manage wealth, and initiate business opportunities in the
sustainable development of natural resources, as well as in
services and knowledge industries. Through investments,
acquisitions, and the establishment of partnerships and diverse
business ventures, MMBC's goal is also to support meaningful
improvement in employment and economic security. For more info, see
http://mmcorporation.ca/.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity. As an independent renewable power
producer which develops, acquires, owns and operates hydroelectric
facilities, wind farms, solar farms and energy storage facilities,
Innergex is convinced that generating power from renewable sources
will lead the way to a better world. Innergex conducts operations
in Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 87
operating facilities with an aggregate net installed capacity of
3,692 MW (gross 4,243 MW) and an energy storage capacity of 159
MWh, including 40 hydroelectric facilities, 35 wind
facilities, 11 solar facilities and 1 battery energy storage
facility. Innergex also holds interests in 13 projects under
development with a net installed capacity of 760 MW (gross 849 MW)
and an energy storage capacity of 605 MWh, 5 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
8,883 MW. Its approach to building shareholder value is to generate
sustainable cash flows, provide an attractive risk-adjusted return
on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future prospects, this
press release contains forward-looking information within the
meaning of applicable securities laws ("Forward-Looking
Information"), including successful development, construction and
financing of the Development Projects, sources and impact of
funding, execution of non-recourse project-level financing
(including the timing and amount thereof), and strategic,
operational and financial benefits and accretion expected to result
from business strategy, future development, business integration,
governance, business outlook, objectives, plans and strategic
priorities, and other statements that are not historical facts.
Forward-Looking Information can generally be identified by the use
of words such as "approximately", "may", "will", "could",
"believes", "expects", "intends", "should", "would", "plans",
"potential", "project", "anticipates", "estimates", "scheduled" or
"forecasts", or other comparable terms that state that certain
events will or will not occur. It represents the projections and
expectations of the Corporation relating to future events or
results as of the date of this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the estimated targeted
revenues, the estimated project costs and schedule, including start
of construction, work conducted and start of commercial operation
for Development Projects and other statements that are not
historical facts. Such information is intended to inform readers of
the potential financial impact of expected results, of the expected
commissioning of Development Projects, of the potential financial
impact of completed and future acquisitions and of the
Corporation's ability to sustain current dividends and to fund its
growth. Such information may not be appropriate for other
purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the three
months ended March 31, 2023.
SOURCE Innergex Renewable Energy Inc.