The 100 MW community wind project of Innergex, the RCM of Lotbinière and the Abenaki Councils of Odanak and Wôlinak selected by Hydro-Québec
Partnership between Innergex (50%), the RCM of Lotbinière (45%), the Abenaki Council of Odanak (2.5%) and the Abenaki Council of Wôlinak (2.5%)
Community and Indigenous partnership valued by Innergex to support its growth in Canada while promoting local participation in economic benefits
Continuous cash flow for 30 years, indexed to inflation
LONGUEUIL, QC, Jan. 26, 2024 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation"), the Regional County Municipality of Lotbinière ("RCM of Lotbinière") and the Abenaki Councils of Odanak and Wôlinak are pleased to announce that their 100 MW wind project has been selected in Hydro-Québec's request for proposals.
"The project's selection following the call for tenders reflects our team's success in developing competitive projects and collaborating with local players to support Hydro-Québec's ambitions," said Michel Letellier, President and Chief Executive Officer of Innergex. "We are proud to continue our diversification in collaboration with the RCM of Lotbinière and the Abenaki Councils of Odanak and Wôlinak. Innergex's strength in forging lasting partnerships with local and Indigenous communities represents a competitive advantage and has been an essential component of our success in Canada since 1990. We are counting on our attributes as a partner of choice to contribute to the growth of renewable energy in our target markets, and to implement projects that will benefit the communities."
"We are delighted that our territory has been given the green light by Hydro-Québec," says Daniel Turcotte, Prefect of the RCM of Lotbinière. "The RCM of Lotbinière will benefit in many ways from the fruits of this regional project, particularly in terms of completing major development projects for our region. Social acceptability and the protection of agricultural land and activities are very important for our region, which is why, as a community partner alongside the company Innergex and the Abenaki Councils of Odanak and Wôlinak, we will ensure that the project, at all stages, is economically, environmentally and socially acceptable. We remain attentive to the community's concerns."
"This wind project represents much more than a renewable energy source for the W8banaki Nation - it symbolizes our commitment to energy self-sufficiency and sustainable economic development," said Rick O'Bomsawin, Chief of the Abenaki Council of Odanak. "Job creation, the involvement of regional businesses and our partnership with Innergex reinforce our position as responsible stewards of the Ndakina, our territory, contributing to an energy future that respects our heritage and ensures the prosperity of our future generations."
"The selection of our wind project by Hydro-Québec is a great success for the W8banaki Nation," said Michel R. Bernard, Chief of the Abenaki Council of Wôlinak. "Beyond providing clean energy, this project will create new long-term, quality employment opportunities for the people of our community. What's more, our collaboration with Innergex and the RCM of Lotbinière reflects our shared vision of a sustainable energy future, placing the W8banaki Nation at the heart of this transition."
Scheduled for commercial operation in late 2028, the power purchase agreement with Hydro-Québec (S&P credit rating: AA-) is expected to be structured as a 30-year take-or-pay contract, indexed to a predefined percentage of the Consumer Price Index ("CPI"). Once commissioned, the project will generate enough electricity to power the equivalent of 20,000 households.
Construction of the MRC Lotbinière wind project will require the creation of around 200 jobs and will involve the participation of local and regional businesses. Long-term, permanent, skilled jobs will also be created during the operating period.
Interconnection and collector system costs will be reimbursed by Hydro-Québec when the facility is commissioned.
The project is subject to the execution of contracts with Hydro-Québec and suppliers, and to the successful completion of permit application processes and regulatory requirements.
About the RCM of Lotbinière
Located on the south shore of Quebec City and to the west of Lévis, the RCM of Lotbinière has seen a strong growth in its territory and population (36,424 inhabitants in 2023) over the past several years. Despite this development, 98% of the RCM's territory is in provincial agricultural zones (the second-highest agricultural GDP among all RCMs in Quebec), making the territory and agricultural activities a major component of its identity. Having been involved with the local municipality in the commissioning of the Mont-Sainte-Marguerite wind farm in Saint-Sylvestre some ten years ago, this is not the RCM's first experience. The project covered by this request for proposals is in line with the RCM's vision of sustainable development through its various planning documents adopted over the past two decades. It is also in line with the RCM's desire to promote the development of a green economy on its territory.
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, which led to Innergex being recognized as Canada's best corporate citizens in 2023 by Corporate Knights. 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 86 operating facilities with an aggregate net installed capacity of 3,579 MW (gross 4,226 MW) and an energy storage capacity of 409 MWh, including 40 hydroelectric facilities, 35 wind facilities, 9 solar facilities and 2 battery energy storage facilities. Innergex also holds interests in 12 projects under development with a net installed capacity of 747 MW (gross 849 MW) and an energy storage capacity of 355 MWh, 4 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 9,939 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.
To learn more, visit innergex.com or connect with us on LinkedIn.
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 (including tax equity funding) of the projects under construction and the advanced-stage prospective projects, sources and impact of funding, execution of non-recourse project-level financing (including the timing and amount thereof), and structure of power purchase agreements, business strategy, 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 project costs and schedule, including obtainment of permits, start of construction, work conducted and start of commercial operation for 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. Please refer to Section 5 - OUTLOOK | Strategic Plan 2020-2025 regarding the assumptions used with respect to the 2025 growth targets.
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 September 30, 2023.
SOURCE Innergex Renewable Energy Inc.
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