NORTH BATTLEFORD, SASKATCHEWAN--(Marketwire - June 14, 2010) - Northland Power Income Fund ("Northland") (TSX:NPI.UN)(TSX:NPI.DB)(TSX:NPI.DB.A) is pleased to announce that it officially broke ground today at the site of the North Battleford Energy Centre.
The plant is being built in the Rural Municipality of North Battleford, Saskatchewan. When completed, the North Battleford Energy Centre will supply enough electricity to power the equivalent of 260,000 homes in Saskatchewan under a 20-year electricity supply contract with SaskPower. The facility will consist of a 170 megawatt General Electric gas turbine operating in "combined cycle" with a heat recovery steam generator (large boiler) producing steam for use in a steam turbine that will produce additional electricity for a total capacity of some 260 megawatts. Natural-gas-fired turbines are considered the cleanest form of reliable thermal generation, and their use in combined cycle mode further increases the efficiency of the facility while limiting environmental impacts.
"We are absolutely delighted to start construction of the North Battleford Energy Centre" said Northland's President and CEO, John Brace. "This exciting project is supported by many people and groups. We are especially pleased with the warm response we've received from the local community, including the councils of both the Rural Municipality and the City of North Battleford. The Government of Saskatchewan has shown great leadership in looking to companies like Northland to help address the province's demand for clean electricity as it continues its impressive growth. We also thank SaskPower for its expression of confidence in Northland and its ongoing help and support."
The North Battleford Energy Centre was selected in SaskPower's 2009 request for proposals that sought bids from private companies to build and operate power generating stations to provide electricity exclusively to SaskPower. The project is owned by Northland and will be project financed by a syndicate of Canadian and international banks led by the Canadian Imperial Bank of Commerce, Bank of Montreal, and Union Bank. The plant is being built by Kiewit Construction of Omaha, Nebraska, and is scheduled to be completed in the second half of 2013.
Northland is a Canadian income trust that has ownership or economic interests in 10 power projects totaling over 1,100 megawatts ("MW") (net 872 MW). Northland's assets comprise natural-gas-fired plants which efficiently and cleanly produce electricity and steam as well as facilities generating renewable energy from wind and biomass. Sales are made almost entirely under long-term contracts with a current average duration of 13 years. Northland's plants are located in Canada, the United States and Germany. In addition, Northland has the 86 MW Spy Hill project, 260 MW North Battleford project and 216 MW of wind, solar and run-of-river hydro projects awarded under the Ontario Power Authority's Feed-in-Tariff program in advanced stages of development. Northland also has a diverse development portfolio of high-quality 'Clean and Green' energy projects, including wind, solar, natural gas, and hydro assets that supports its strategy of sustainable growth primarily through internally developed opportunities. The Fund's trust units and two series of convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN, NPI.DB and NPI.DB.A respectively, are qualified investments for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re-investment plan that allows Unitholders who are residents of Canada to automatically have their monthly cash distributions reinvested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.