Business World of Renewable Energy

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Innergex: Financial Closing of the Innavik Hydro Project in Inukjuak, Quebec

Longueuil, Canada - Innergex Renewable Energy Inc. and the Pituvik Landholding Corporation announce the closing of a $92.8 million project financing with The Manufacturers Life Insurance Company for the construction of Innavik, a 7.5 MW run-of-river hydroelectric facility on the Inukjuak River near Inukjuak, Nunavik, in northern Quebec.

“Reaching financial close for the Innavik Project initiated by our community in 2008 in order to reduce local greenhouse gas emissions is a historic achievement,” said Sarah Lisa Kasudluak, President of Pituvik.

The total construction costs are estimated at $127.8 million and will be mainly financed through the $92.8 million construction loan. The construction loan will convert into a 40-year term loan carrying a fixed interest rate of 3.95% once the facility reaches commercial operation scheduled in December 2022. The 40-year term loan is set to match the duration of the 40-year power purchase agreement signed with Hydro-Québec Distribution. The remaining $35.0 million will be financed by Innergex and Pituvik.

The Innavik Project is the first partnership (50:50) between an Inuit corporation and an independent power producer. This innovative project will provide customers of Inukjuak’s off-grid system with clean and renewable energy, replacing diesel for their basic electricity and heating needs.

The Innavik Project is expected to be able to produce a gross estimated long-term average of 54.7 GWh and a $8.6 million projected adjusted EBITDA per year on average for the first five years of operation.

Source: IWR Online, 06 Nov 2020