September 22 (Renewables Now) - Canada’s Northland Power Inc (TSE:NPI) expects that financial close on the 1,044-MW Hai Long offshore wind project in Taiwan will be reached shortly thanks to the signing of a TWD-118-billion (USD 3.68bn/EUR 3.45bn) debt financing deal.
The power producer on Thursday announced the signing of an over 20-year credit agreement for non-recourse financing from a group of 15 international and local lenders. Once financial close is achieved, which will occur after all conditions precedent have been fulfilled, the total debt and equity required for the project will be fully funded. The required investment will be covered by CAD 5 billion (USD 3.72bn/EUR 3.48bn) in debt, CAD 1 billion of pre-completion revenues and equity totalling CAD 3 billion.
Northland Power is in the process of selling a 29.4% portion of its stake in the CAD-9-billion project to Gentari, a clean energy business of Malaysian oil and gas company Petroliam Nasional Bhd. The deal, agreed last December and expected to close in the fourth quarter, will help the Canadian firm fund its equity commitment, leaving it with a 30.6% interest.
Once up and running, Hai Long is expected to add a five-year average CAD 230 million - CAD 250 million to Northland’s adjusted EBITDA and generate between CAD 75 million and CAD 85 million of free cash flow per year.
To be built 45km-70km off the Changhua coast in the Taiwan Strait, Hai Long is scheduled to go online in 2026/2027. The complex made of the Hai Long 2 and Hai Long 3 parks will produce enough power to supply over one million homes in Taiwan.
(TWD 10 = USD 0.312/EUR 0.292)
(CAD 1.0 = USD 0.744/EUR 0.696)