Northland Power to Acquire Offshore Wind Project in Canada

NaiKun Wind Energy Group will sell the NaiKun Offshore Wind Farm located in the Hecate Strait off the coast of British Columbia, Canada, to Northland Power

NaiKun Wind Energy Group has announced that it has entered into an agreement to sell the NaiKun Offshore Wind Farm located in the Hecate Strait off the coast of British Columbia, Canada, to Northland Power, a global developer, owner and operator of sustainable infrastructure assets with expertise and capacity to advance early-stage renewable energy projects to the next level of development.

Upon successful completion of the transaction, Northland will be responsible for all aspects of the Project’s development. The Transaction will occur by way of the company selling Northland a 100 percent interest in its wholly-owned subsidiary, NaiKun Wind Development Inc.

Pursuant to the terms of the Agreement, NaiKun will receive the following:

• upon the Project reaching its financial close, a payment based on the size of the developed project, which is expected to equal to the majority of NaiKun’s historical development costs on the Project;
• upon the Project becoming operational, future payments consisting of annual cash distribution from the Project after the operating costs and specified return on equity have been recovered by Northland; and
• subject to the financial close of the project, an option to purchase up to a 10 percent interest in Northland’s interest in the Project.

The Transaction is anticipated to close in mid-2020, subject to the satisfaction of certain customary conditions, including but not limited to the firm obtaining the applicable regulatory approvals and approval of the Transaction by way of a special resolution of its shareholders.

“Northland can apply both its global offshore wind experience and long track record developing Canadian power projects to this Project,” said Mike Crawley, President and Chief Executive Officer of Northland Power. “However, before anything else happens we will be reaching out to the Haida Nation to discuss the Project and how it could potentially move forward.”

In February, we had reported that Northland Power had announced the signing of an agreement to acquire Dado Ocean Wind Farm, a development company with multiple early-stage offshore wind development sites near Chodo Island, off the south coast of South Korea. Northland’s current portfolio in Asia includes a 60 percent equity stake in the 1,044 MW Hai Long offshore wind project under development in Taiwan and a joint venture to pursue offshore wind development opportunities in Chiba Prefecture, Japan.