Press releases

Innergex Achieves Construction Financial Close of Its Boswell Springs Wind Project

News Release

  • Closing of a US$534 million (CAN$704 million) construction and term financing and a US$49 million (CAN$65 million) letter of credit (“LC”) facility for the construction and operation of the 329.8 MW Boswell Springs Wind Project
  • The project qualifies for the Energy Community PTC Bonus, which increases PTCs by 10%
  • On-site construction activities have started, and contractors are now fully mobilized on site
  • Tax equity investment process is well advanced and expected to close during Q3 2023

LONGUEUIL, Quebec, July 14, 2023  – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) is pleased to announce the closing of a US$534 million (CAN$704 million) construction financing including a US$203 million (CAN$268 million) 10-year non-recourse term loan with BNP Paribas, Credit-Agricole CIB, Export Development Canada, and MUFG Bank, Ltd., acting as Joint Lead Arrangers, for the construction and operation of the 329.8 MW Boswell Springs Wind Project (the “Project”) located in Wyoming, United States. Under the Inflation Reduction Act, the project is potentially eligible for up to 120% of Production Tax Credits (“PTCs”), which includes a 10% Energy Community PTC Bonus and a 10% Domestic Content PTC Bonus. The Project is eligible to benefit from the Energy Community Tax Credit PTC Bonus due to its location in an "energy community”, as defined in the Inflation Reduction Act. The eligibility for the 10% Domestic Content PTC Bonus is currently being evaluated, which should further enhance the profitability of the project.

“We are very pleased with the terms of this financing as it demonstrates the strong market confidence in Innergex’s technical and financial abilities to develop high-quality and well-structured assets that generate attractive cash flows,” said Michel Letellier, President and Chief Executive Officer of Innergex. “In addition, the passage of the Inflation Reduction Act brings more competitiveness to the renewable energy sector than ever before by providing bonus credits for certain clean energy projects. In the case of Boswell Springs, we were pleased to learn that the project is eligible for the Energy Community PTC Bonus, and we decided to seize the opportunity to finance the bonus credits to substantially improve the investment economics, over and above associated cost increases.”

The procurement of wind turbine generators from GE Vernova’s onshore wind business has been secured and the permitting process has been completed. The EPC contracts have been executed with Mortenson to act as the balance of plant contractor for the wind farm and AEI as the EPC contractor for the transmission line. Construction teams are now fully mobilized on the site and have begun work on both the balance of plant and generation line.

Total construction costs of the Boswell Springs Wind Project have been revised to include financing costs related to the Energy Community PTC Bonus qualification and additional construction and development costs. Total construction costs are expected to amount to US$576 million (CAN$760 million), of which US$103 million (CAN$136 million) has already been funded through Innergex’s revolving credit facilities. A substantial portion of the first drawdown under the Boswell Springs construction loan will refund equity over contributed by Innergex and be applied as a repayment of the revolving credit facility. The process of securing a tax equity commitment is well advanced and expected to close during Q3 2023.

Operating cash flows from the Boswell Springs Wind Project are expected to reach approximately US$22 million (CAN$29 million) on an annual basis. In addition, the project is expected to benefit from 110% of the PTCs which should contribute an annual approximative US$42 million (CAN$55 million), indexed to inflation over a 10-year period, including the 10% Energy Community PTC Bonus.

The electricity to be produced by the Boswell Springs Wind Project will be sold under a 30-year, 320 MW busbar power purchase agreement signed with PacifiCorp, a Berkshire Hathaway subsidiary. The commercial operation date is scheduled for Q4 2024.

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 3,692 MW (gross 4,243 MW) and an energy storage capacity of 159 MWh, including 40 hydroelectric facilities, 35 wind facilities, 11 solar facilities and 1 battery energy storage facility. Innergex also holds interests in 13 projects under development with a net installed capacity of 760 MW (gross 849 MW) and an energy storage capacity of 605 MWh, 5 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 8,883 MW. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and to distribute a stable dividend.


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 Corporation’s successful development, construction and financing (including tax equity funding) of the projects under construction, sources and impact of funding, execution of non-recourse project-level financing (including the timing and amount thereof), and financial benefits and accretion expected to result from such projects under construction, , 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,  the estimated costs and schedule, including start of commercial operation for project under construction, the qualification of U.S. projects for PTCs 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 sustain current dividends 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; project performance; availability of capital resources and timely performance by third parties of contractual obligations; favourable market conditions for share issuance to support growth financing; favourable economic and financial market conditions; the Corporation’s success in developing and constructing new facilities; 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 March 31, 2023.

For information

Investor Relations
Jean Trudel
Chief Financial Officer
450 928-2550, ext. 1252

Karine Vachon
Senior Director – Communications
450 928-2550, ext. 1222