Press releases

Innergex Acquires Remaining Interests in Its Mountain Air Wind Portfolio in Idaho

News Release

  • Acquisition of the remaining 37.75% minority interest of the tax equity partner in the 138 MW Mountain Air wind portfolio already owned by Innergex
  • A CAN$64.4 million transaction to increase Innergex’s contracted profile in the United States
  • The transaction is immediately accretive to Free Cash Flow per Share

LONGUEUIL, Quebec, December 14, 2022 – Innergex Renewable Energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) acquired all the Class A shares of its 138 MW Mountain Air wind portfolio in Idaho, in the United States, for a total consideration of US$47.5 million (CAN$64.4 million) from its tax equity partner, an affiliate of MetLife Investment Management. These shares represent the remaining 37.75% of the outstanding shares of the portfolio not already owned by Innergex.

“We are pleased to now have the Mountain Air wind portfolio as a wholly owned entity,” said Michel Letellier, President and Chief Executive Officer of Innergex. “This transaction not only represents a natural continuation of the path we embarked on when we first acquired a stake in the Mountain Air portfolio in 2020, but also an opportunity to generate additional accretive cash flows while increasing Innergex’s contracted wind profile in the United States.”

The Mountain Air wind portfolio comprises six 23 MW wind farms, Cold Springs, Desert Meadow, Hammett Hill, Mainline, Ryegrass and Two Ponds. These wind assets, on a consolidated basis, are expected to generate annual revenues of approximately US$29.7 million (CAN$40.3 million) in 2023, while operating, general and administrative expenses are expected to reach US$7.1 million (CAN$9.6 million) during the same period.

The acquisition of the remaining shares of Mountain Air will mainly be financed with the proceeds from the sale of safe harbor solar modules to be received during the first quarter of 2023. The modules were sold to an undisclosed party on December 8, 2022. The decision to sell these modules follows the publication of the Inflation Reduction Act (“IRA”) supporting renewable energy projects, allowing Innergex to secure tax incentives for its development project portfolio without the use of the safe harbor modules previously secured under the former tax incentive program.

All six wind farms have 10-year remaining power purchase agreements with the Idaho Power Company for 100% of the electricity as produced and at attractive escalating prices (US$90.0/MWh in 2023, escalating to US$120.9/MWh in 2032).

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 84 operating facilities with an aggregate net installed capacity of 3,634 MW (gross 4,184 MW) and an energy storage capacity of 159 MWh, including 40 hydroelectric facilities, 35 wind facilities, 8 solar facilities and 1 battery energy storage facility. Innergex also holds interests in 13 projects under development with a net installed capacity of 731 MW (gross 768 MW) and an energy storage capacity of 745 MWh, 3 of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totaling 8,513 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 project acquisitions, accretion expected to result from such acquisitions, 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 estimated targeted revenues, targeted Revenues Proportionate, targeted Adjusted EBITDA and targeted Adjusted EBITDA Proportionate, targeted Free Cash Flow, targeted Free Cash Flow per Share and other statements that are not historical facts. Such information is intended to inform readers of the potential financial impact of completed acquisitions. 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. Please refer to Section 1 - Highlight of the Management's Discussion and Analysis for the three- and six-month period ended June 30, 2022 for details regarding the assumptions used with respect to the 2022 growth targets and to Section 5 - Outlook of the Annual Report for the 2020-2025 Strategic Plan outlook.

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- and nine-month periods ended September 30, 2022.

For information

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

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