Northland Power Provides Strategic Update Ahead of 2025 Investor Day

Core Insights - Northland Power Inc. announced a strategic update and 2030 outlook, focusing on growth priorities and key initiatives to enhance shareholder value [1][3] Strategic Highlights - The company is transitioning from three technology-based business units to two regional hubs: Americas and International, aiming to eliminate duplication and enhance operational efficiency [3] - Northland's strategy emphasizes safety, operational excellence, and disciplined capital allocation to achieve sustainable and profitable growth [3] - The strategic update outlines three key horizons: Deliver, Strengthen, and Grow, to ensure resilience and value creation for shareholders [3] Business Update - Northland acquired two late-stage battery energy storage projects in Poland, totaling 300 MW / 1.2 GWh, with a total estimated cost of €200 million [4] - The Nordsee One offshore wind farm signed a five-year Power Purchase Agreement (PPA) with Shell for approximately one-third of its production, starting in June 2027 [5] Financial Framework and Future Outlook - The company aims to double its gross operating capacity to 7 GW by 2030 and targets a minimum project return of 12% [7] - Northland is implementing a cost optimization program targeting over $50 million in annual savings by 2028 [7] - The company projects a 10% total shareholder return and a 6% Free Cash Flow per share compound annual growth rate, forecasting FCF/share to be between $1.55 and $1.75 by 2030 [7] Operational Capacity and Growth - Northland has over 2.2 GW of projects under construction and a pipeline of 2.7 GW in mid-to-late stage development [8] - The company plans to utilize non-recourse project-level financing as the primary funding source, supplemented by asset sell-downs and partner equity [9]