- Signature of a 30-year power purchase agreement with
Hydro-Québec for electricity to be generated by the Peshu Napeu
community wind project (300 MW)
- Partnership between the Innu Council of Pessamit (39%) and
Innergex (38%), with a stake for 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 and steady cash flow for 30 years, indexed to
inflation
LONGUEUIL, QC, May 17, 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 the signing of a 30-year power purchase
agreement with Hydro-Québec (S&P credit rating: AA-) for the
electricity to be generated by the 300 MW community wind power
project.
"The realization of this important first milestone demonstrates
our determination to achieve energy sovereignty over the
Nitassinan," said Marielle Vachon,
Chief of the Innu First Nation of Pessamit. "Having a full and
complete majority interest in this proposed wind project, we are
assured that it will be developed in a manner that respects our
community's ancestral rights, culture and values, as well as
promoting its economic and social development."
"As the first wind project to be majority-owned by the Innu
First Nation of Pessamit, we are very proud of the historic nature
of the signing of this agreement," said Michel Letellier, President and Chief Executive
Officer of Innergex. "Beyond the production of electricity from
renewable sources, this project will bring significant economic and
social benefits to Indigenous and local communities, reinforcing
our commitment to regional stakeholders. Together, we are working
to create an inclusive, sustainable and transformative energy
future for Indigenous and local communities."
"The signing of this agreement by our respective communities
marks an important milestone, not only in the development of the
Peshu Napeu wind project, but also in our shared commitment to
energy transition and sustainable development," said Marcel Furlong, prefect of the RCM of
Manicouagan. "By promoting the use of renewable energies, we are
among the visionaries eager to reduce our carbon footprint and
preserve our environment for future generations."
The Peshu Napeu wind farm project is named in tribute to Mr.
Barnabé Vachon, who was known to the Innu of Pessamit as Peshu
Napeu, meaning Lynx Man in Innu. Mr. Vachon was not only a
respected figure in his community, but also a pioneer in defending
the rights and interests of his people. In 1973, Mr. Vachon was one
of the first Innu to publicly voice his concerns about the lack of
consultation with the Innu of Pessamit during the construction of
the Manic-5 facility. His passionate plea for consultation
underscored the importance of Indigenous voices in decision-making
processes concerning land development projects and paved the way
for greater recognition of Indigenous rights.
The long-term power purchase agreement 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.
On January 26, 2024, the Peshu
Napeu wind project was selected in Hydro-Québec's call for tenders.
Upon its full commissioning in 2029, the project will generate
enough electricity to meet the energy needs of around 60,000
homes.
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 future generations.
The project is subject to the execution of contracts with
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. 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 87
operating facilities with an aggregate net installed capacity of
3,600 MW (gross 4,234 MW) and an energy storage capacity of 409
MWh, including 41 hydroelectric facilities, 35 wind
facilities, 9 solar facilities and 2 battery energy storage
facilities. Innergex also holds interests in 10 projects under
development with a net installed capacity of 728 MW (gross 826 MW)
and an energy storage capacity of 295 MWh, 4 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
10,071 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.
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 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 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 Corporation's targeted
production, the estimated project size, costs and schedule,
including obtainment of permits, start of construction, work
conducted and start of commercial operation, 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 year
ended March 31, 2024.
SOURCE Innergex Énergie Renouvelable Inc.