Innergex, the RCM of Lotbinière and the Abenaki Councils of Odanak and Wôlinak sign 30-year power purchase agreement with Hydro-Québec

• Signature of a 30-year power purchase agreement with Hydro-Québec for electricity to be generated by the Lotbinière Ndakina community wind project (100 MW)
• Partnership between Innergex (50%), the RCM of Lotbinière (45%), the Abenaki Council of Odanak (2.5%) and the Abenaki Council of Wôlinak (2.5%)
• Community and Indigenous partnership to bring economic and social benefits to the local community
• Guaranteed steady cash flow for 30 years, indexed to inflation

LONGUEUIL, QC, April 15, 2024 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation"), the Regional County Municipality of Lotbinière ("RCM of Lotbinière") and the Abenaki Councils of Odanak and Wôlinak 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 100 MW community wind power project.

« The signing of this long-term contract with Hydro-Québec marks a significant milestone in the project's progress. By producing reliable, competitively priced wind energy, we will contribute to strengthening the stability of the power grid while meeting Quebec's growing energy needs. This agreement underscores our determination to support the ambitions of Canadian utilities in the energy transition, while guaranteeing ongoing revenues for our project, » said Michel Letellier, President and Chief Executive Officer of Innergex.

« The signing of the power purchase agreement with Hydro-Québec marks the culmination of a long administrative process conducted in concert with our partners, and sets in motion the actual development of the project by ensuring with the community that it is socially acceptable, both to the citizens and to the various organizations and associations concerned, all in order to meet the growing demand for renewable energy, » says Daniel Turcotte, Prefect of the RCM of Lotbinière.

« We are pleased to see the progress of our project, which is important for the prosperity of future generations, and which also recognizes our role as guardians of the Ndakina, our ancestral territory. We will continue to be involved to ensure territorial development that respects our values and traditions, » said Rick O'Bomsawin, Chief of the Abenaki Council of Odanak.

« I'm very proud to see our project reach this important milestone. It allows us to look forward to significant economic benefits for the W8banaki Nation, and the continuation of a fruitful collaboration with our partners at Innergex and the RCM of Lotbinière towards a sustainable and inclusive energy transition, » said Michel R. Bernard, Chief of the Abenaki Council of Wôlinak.

The long-term power purchase agreement is structured as a 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 Lotbinière Ndakina wind project was selected in Hydro-Québec's call for tenders. Upon commercial commissioning, scheduled in late 2028, the project will generate enough electricity to power the equivalent of 20,000 households.

Construction of the Lotbinière Ndakina wind project will require the creation of around 200 jobs and will involve the participation of local and regional businesses. Long-term, permanent, skilled jobs will also be created during the operating period.

Interconnection and collector system costs will be reimbursed by Hydro-Québec when the facility is commissioned.

The project is subject to the execution of contracts with suppliers, and to the successful completion of permit application processes and regulatory requirements.

Located on the south shore of Quebec City and to the west of Lévis, the RCM of Lotbinière has seen a strong growth in its territory and population (36,424 inhabitants in 2023) over the past several years. Despite this development, 98% of the RCM's territory is in provincial agricultural zones (the second-highest agricultural GDP among all RCMs in Quebec), making the territory and agricultural activities a major component of its identity. Having been involved with the local municipality in the commissioning of the Mont-Sainte-Marguerite wind farm in Saint-Sylvestre some ten years ago, this is not the RCM's first experience. The project covered by this request for proposals is in line with the RCM's vision of sustainable development through its various planning documents adopted over the past two decades. It is also in line with the RCM's desire to promote the development of a green economy on its territory.

The Abenaki Councils of Odanak and Wôlinak form the W8banaki Nation. The name W8banaki comes from the combination of the words "W8ban" (light, glow or dawn) and "Aki" (land), meaning "People of the Dawn". Proud of their cultural and linguistic heritage, before the arrival of Europeans, the W8banakiak shared vast forested areas in present-day southern Quebec, Maine, New Hampshire and Vermont, as well as parts of Massachusetts and New Brunswick. This vast area forms the Ndakina - "Our Territory" - whose name designates the ancestral territory of the W8banaki Nation. Through their knowledge of the territory and their willingness to defend the interests of their members, the Abenaki Councils of Odanak and Wôlinak are key players in any project involving the Ndakina.

Still present and active on its ancestral territory, the W8banaki Nation now numbers over 3,000 individuals, spread mainly across Quebec and Canada, as well as the United States. The communities of Odanak and W8linak, located respectively on the banks of the Alsig8ntegw and W8linaktegw (Saint-François and Bécancour rivers) in Centre-du-Québec, are the only W8banakiak settlements on the Ndakina.

For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity, which led to Innergex being recognized as Canada's best corporate citizen in 2023 by Corporate Knights. 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.

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 December 31, 2023.

www.innergex.com 

SOURCE Innergex Renewable Energy Inc.

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