Northland Power, Gentari Renewables clos Hai Lon partnership

Northland Power announced the closing of its previously announced transaction with Gentari International Renewables Pte. Ltd., a subsidiary of clean energy solutions company 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 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. Hai Long’s total cost is projected to be approximately CAD $9 billion, with CAD $5 billion of the costs covered by non-recourse debt provided by the project lenders, approximately CAD $1 billion of pre-completion revenues derived during the project construction phase, and the remaining equity investment contributed by the project’s partners. Northland’s equity investment has been fully secured through funds raised under its at-the-market equity program in 2022 and with the completion of its partnership with Gentari.