Northland Power Inc. has signed an agreement with Gentari International Renewables Pte. Ltd.–who have agreed to acquire 49% of Northland’s ownership interest in the Hai Long offshore wind project (the “Project”) located in Taiwan. Upon closing, the transaction will result in Gentari holding a 29.4% indirect equity interest in the Project. Northland will remain the single largest shareholder of the Project with 30.6% and will continue to take the lead role in its construction and operation.
This transaction marks a significant milestone in the development of the Project, allowing Northland to partner with Gentari through equity consideration of approximately NT $18 billion (CAD $0.8 billion). Final equity consideration remains subject to closing adjustments in accordance with the terms of the purchase and sale agreement. Transaction close is expected to occur following the achievement of the financial close of the Project. It remains subject to receipt of customary regulatory approvals and satisfaction of all closing conditions pursuant to the terms of the purchase and sale agreement.
The two companies also seek to establish a broader strategic partnership, promoting further growth in Taiwan’s offshore wind industry, and have signed an Exclusivity Agreement in this regard. This partnership demonstrates an opportunity for both companies to share the value creation in offshore wind development while supporting the global transition to renewable energy.
Northland has almost 3 GW of gross capacity for projects scheduled for financial close and commencement of construction within the next two years. Once these projects are complete, Northland’s total gross capacity will nearly double to more than 6.5 GW by 2027. Longer-term, the Company continues to advance its previously disclosed pipeline of over 10 GW encompassing its identified projects and additional opportunities to support the growth of the Company.
Gentari has an established target of building 30 to 40 GW in renewable energy capacity by 2030 through utility-scale projects across the solar, onshore and offshore wind, and battery storage, targeting commercial, industrial, and retail customers.
Mike Crawley, President and Chief Executive Officer of Northland, noted, “Today’s announcement is a significant milestone for Northland as it represents the first transaction as part of our partnership model. We are delighted to welcome Gentari as part of the partnership in the Hai Long offshore wind project and look forward to developing a broader strategic partnership in Hai Long and potentially further beyond. This partnership is further evidence of the global interest in developing renewable energy projects to aid global decarbonisation efforts and the transition to low carbon economies.”
Mohammad Azhar, Chief Renewables Officer of Gentari, added, “This marks Gentari’s inaugural entry into the offshore wind segment. The partnership with Northland offers an opportunity for even greater collaboration in developing other offshore wind opportunities in Taiwan and beyond.”
Image source: Courtesy of Northland Power
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