Signature of a 30-year power purchase agreement with BC Hydro for the electricity to be generated by the K2 wind project (160 MW).
Continuous and steady cash flow for 30 years, indexed to inflation upon commencement of commercial operation.
Potential advancements in clean energy, sustainability, and economic growth within the syilx Okanagan Territory.
LONGUEUIL, QC, Dec. 27, 2024 /CNW/ - Westbank First Nation ("WFN") and Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") are pleased to announce the signing of a 30-year electricity purchase agreement (EPA) with BC Hydro for the electricity to be generated by the K2 wind project (160 MW). Located in the Pennask Mountain area, this initiative represents an exciting opportunity for the communities involved to explore their potential roles in advancing clean energy, sustainability, and economic growth.
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"Westbank First Nation is proud to have been awarded an Electricity Purchase Agreement alongside Innergex for the proposed K2 Wind Energy Project," said Westbank First Nation Chief Robert Louie. "This project demonstrates the power of collaboration and our dedication to leaving a cleaner, healthier environment for future generations. We look forward to engaging with our Membership as we move toward finalizing this transformative opportunity."
As per WFN's Constitution, a Membership Referendum with a positive outcome is required for WFN to fully sign on and become a partner on the project. This democratic process ensures that all WFN Members have an opportunity to voice their perspectives and collectively guide WFN's path forward.
"We thank Westbank First Nation for their interest and collaboration on the K2 Wind Project," said Michel Letellier, President and Chief Executive Officer of Innergex. "We are proud to collaborate with Westbank First Nation to bring more clean energy to the region, while respecting the land and values of the community. Our partnerships with Indigenous communities are at the heart of our approach to renewable energy development, reinforcing our commitment to projects that honour Indigenous values and contribute to long-term 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 K2 demonstrates our focus on disciplined growth, fostering regional sustainability, and creating value for all stakeholders."
A Project Rooted in Collaboration and Engagement
The K2 Wind Project is being developed in close collaboration with the respective syilx/Okanagan 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 Pennask Mountain area.
The project is expected to create approximately 130 job opportunities locally during development, construction, and operation phases, supporting local economic growth and workforce development, while respecting traditional ecological knowledge and cultural values.
Transparent and inclusive consultation is central to the project to ensure it delivers meaningful benefits for the community, 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 syilx Nations, municipalities, and stakeholders, and ensure that local communities are involved at every stage.
Environmental and Community Benefits
The K2 Wind Project will deliver numerous environmental and community benefits, including:
Powering 50,000 Homes: With an estimated annual generation of 500 GWh, the wind farm will provide enough renewable electricity to power approximately 50,000 households, helping to meet BC Hydro's goals of reducing greenhouse gas emissions and advancing clean electrification.
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 2031. 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 Westbank First Nation Westbank First Nation (WFN) is a self-governing Nation and one of seven Indigenous communities within the Okanagan Nation. Located in the South Central Interior of British Columbia, just minutes from Kelowna, WFN is home to over 900 Members and 11,000 residents.
WFN is committed to fostering a healthy and prosperous future by governing with sovereignty, fairness, transparency, and confidentiality, while honouring its deep connection to the lands and resources within its traditional territory. It promotes innovation to drive local economic growth, empowers individuals to achieve their aspirations, and enhances Member lives through effective services, programs, and consultations. WFN also prioritizes the preservation and promotion of syilx language, culture, and traditions.
As a leader in Indigenous self-government, WFN values the responsible management and protection of its resources, environment, and watersheds, while delivering progressive economic, cultural, and social services to its Members, residents, and businesses.
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 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.
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