A 300 MW community wind project by the Innu Council of Pessamit and Innergex, with the participation of the RCM of Manicouagan selected by Hydro-Québec
Partnership between the Innu Council of Pessamit (39%), Innergex (38%) and the RCM of Manicouagan (23%)
Historic agreement for a first renewable energy project with majority participation for the Innu First Nation of Pessamit, providing a path for economic and social development in this community and advancing reconciliation with Indigenous peoples
Community involvement with significant socio-economic benefits in the RCM of Manicouagan
Continuous cash flow for 30 years, indexed to inflation
LONGUEUIL, QC, Jan. 26, 2024 /CNW/ - The Innu Council of Pessamit, Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation"), and the regional county municipality of Manicouagan ("RCM of Manicouagan") are pleased to announce that their 300 MW Manicouagan wind project has been selected in Hydro-Québec's request for proposals.
"Over the past few months, we have developed a relationship based on trust and mutual respect with Innergex, and we are extremely pleased to enter into a partnership with them to carry out a renewable energy project on the Nitassinan," said Marielle Vachon, Chief of the Innu First Nation of Pessamit. "This project, in which the Innu First Nation of Pessamit will have a majority shareholding, is in line with our First Nation's traditional values and the principles of the United Nations Declaration on the Rights of Indigenous Peoples, and will be carried out in a way that respects our ancestral rights and culture, and promotes the economic development of our community."
"We are very proud of the collaborative nature of this project in partnership with the Innu Council of Pessamit and the RCM of Manicouagan," said Michel Letellier, President and Chief Executive Officer of Innergex. "I would like to congratulate the Innu Council of Pessamit for its leadership, determination and collaboration with the RCM of Manicouagan and Innergex that led to this success. Building long-term relationships with Indigenous and local communities has been at the heart of our development strategy for over 30 years. As we continue our diversification efforts, Quebec continues to represent a market of choice for our growth, and our team is actively working to design competitive and profitable community projects."
"The Manicouagan RCM has been the cradle of major pioneering projects in renewable energy production since the early days of Quebec's great hydroelectric history and is proud to be among the visionaries who are now investing in wind power in order to offer the best to future generations," said Marcel Furlong, elected prefect of the RCM of Manicouagan. "We are even more delighted that the foundations of this project are based on a solid and lasting partnership with the Innu community of Pessamit, a partnership that is unconditional for the elected officials, in order to consent to the development of wind energy in Manicouagan. The considerable economic benefits generated by this wind facility will directly benefit our local communities and the development of Manicouagan for decades to come."
The project development process is ongoing, and the population will continue to be consulted and kept informed about the project in order to maintain collaboration with communities and ensure the success of this project, which will benefit present and future generations.
Commercial operation is scheduled for 2029, and 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 meet the energy needs of around 60,000 homes.
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 Innu Council of Pessamit
The Innu Council of Pessamit acts for and on behalf of the Innu First Nation of Pessamit. This First Nation is an Indigenous nation made up of more than 4,000 Innu from Pessamit. The ancestral territory of this First Nation, the Nitassinan des Innus de Pessamit, covers an area of over 138,000 km2, in the Manicouagan region.
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.
About RCM of Manicouagan
The RCM of Manicouagan is located in the Côte-Nord region, almost 400 km east of Québec City, and comprises eight communities, including the town of Baie-Comeau, all bordering the St. Lawrence River and Route 138. This immense territory of 39,741.49 km2 - one of the largest for an RCM in Québec - is occupied almost entirely by the unorganized Rivière-aux-Outardes territory, characterized by its boreal forest and the presence of several hydroelectric power stations, including the renowned Manic-5. The RCM of Manicouagan is identified as a resource region, and the exploitation of its natural riches is at the root of its economic development.
Discover Manicouagan: visit mrcmanicouagan.qc.ca and manicouagan.ca.
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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