Signature of a 30-year power purchase agreement with BC Hydro for the electricity to be generated by the Stewart Creek wind project (200 MW).
Partnership between West Moberly First Nations (51%) and Innergex (49%) to bring more clean energy to the region.
Will bring significant opportunities for economic growth and social development to the region.
Continuous and steady cash flow for 30 years, indexed to inflation.
LONGUEUIL, QC, Dec. 27, 2024 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased to announce the signing of a 30-year electricity purchase agreement (EPA) with BC Hydro for the electricity to be generated by the Stewart Creek wind project (200 MW), in partnership with West Moberly First Nations. Located approximately 60 km east of Innergex's Dokie Wind Farm, the community wind project represents a step forward in the transition to clean, renewable energy for British Columbia.
Innergex Renewable Energy Inc. Logo (CNW Group/Innergex Renewable Energy Inc.)
"We thank West Moberly First Nations for their trust and collaboration on the Stewart Creek Wind Project," said Michel Letellier, President and Chief Executive Officer of Innergex. "We are proud to work alongside them to bring more clean energy to the region while honouring the land and values of West Moberly First Nations and other First Nations in the area. Partnerships with Indigenous communities represent a cornerstone of our approach to renewable energy development, reflecting our commitment to advancing projects that prioritize Indigenous values while contributing to economic, environmental, and social progress. This milestone reflects the strength of our development portfolio, and our shared commitment to advancing British Columbia's energy transition. Expanding our Canadian wind portfolio through projects like Stewart Creek demonstrates our focus on disciplined growth, fostering regional sustainability, and creating value for all stakeholders."
A Project Rooted in Collaboration and Engagement
The Stewart Creek Wind Project is being developed in close collaboration with First Nations in the area. Guided by collaborative land-use planning, the project integrates cultural preservation, environmental stewardship, and economic empowerment for Indigenous communities in the Peace River region.
The project is expected to create approximately 150 job opportunities during development, construction, and operation phases, supporting local economic growth and workforce development.
Transparent and inclusive consultation is central to the project, with engagement initiatives such as public open houses, media outreach, project-specific communications, and job fairs to commence in the near future. These efforts aim to foster open dialogue, build lasting relationships with surrounding Nations, municipalities, and stakeholders, and ensure that local communities are involved at every stage.
Environmental and Community Benefits
The Stewart Creek Wind Project will deliver numerous environmental and community benefits, including:
Powering 60,000 Homes: With an estimated annual generation of 600 GWh, the wind farm will provide enough renewable electricity to power approximately 60,000 households, helping to meet BC Hydro's goals of reducing greenhouse gas emissions and advancing clean electrification.
Support for Local Air and Water Quality: The Stewart Creek project will help replace fossil fuels with clean energy in the region, improving air and water quality while enhancing the local infrastructure to support the electrification of industrial operations, reducing emissions in the long term.
Commitment to Sustainability and Environmental Protection: The project minimizes environmental impact by avoiding sensitive cultural and ecological resources. It integrates sustainability at every stage, with remediation practices to restore the land, preserve cultural values, and enhance biodiversity and wildlife habitats if decommissioned.
The project is scheduled for commercial operations in 2030. The long-term electricity purchase agreement with BC Hydro (S&P credit rating: AA-) is structured as a 30-year take-or-pay contract, indexed to a predefined percentage of the Consumer Price Index ("CPI") ensuring financial stability and protection against inflation.
The project is subject to the execution of contracts with suppliers, and to the successful completion of permit application processes and regulatory requirements.
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, Chile and France and manages a large portfolio of high-quality assets currently consisting of interests in 89 operating facilities with an aggregate net installed capacity of 3,377 MW (gross 4,332 MW), including 42 hydroelectric facilities, 35 wind facilities, 9 solar facilities and 3 battery energy storage facilities. Innergex also holds interests in 14 projects under development with a net installed capacity of 991 MW (gross 1,334 MW), 2 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totaling 9,807 MW. Its approach to building shareholder value is to generate sustainable cash flows and provide an attractive risk-adjusted return on invested capital. 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 the power production, prospective projects, 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), , structure of power purchase agreement, 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 Corporation's targeted production, the estimated targeted revenues and production tax credits, targeted Revenues and Production Tax Credits Proportionate, project size, costs and schedule, including obtainment of permits, start of construction, work conducted and start of commercial operation for the qualification of Canadians projects for ITCs 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 pay a dividend 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; availability of capital resources and timely performance by third parties of contractual obligations; favourable economic and financial market conditions; average merchant spot prices consistent with external price curves and internal forecasts; no material changes in the assumed U.S. dollar to Canadian dollar and Euro to Canadian dollar exchange rate; no significant variability in interest rates; the Corporation's success in developing and constructing new facilities; no adverse political and regulatory intervention; 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 September 30, 2024.
