Northland Power announces closing of Frampton Wind Project sale

Northland Power Inc. has closed of the sale of its 66.7% interest in the 24 MW Frampton Wind Farm in Québec, Canada to Boralex Inc.

Upon closing, Northland received consideration of approximately $11.5 million for its interest in the project.

The remaining 33.3% of the advanced stage development project is owned by the host municipality of Frampton, Quebec. Once constructed, Frampton will consist of 12 Enercon E-82 wind turbines and is covered by a power sales contract with Hydro-Québec. With a 20-year term, the contract was awarded under the Hydro-Québec Distribution request for proposals for 250 MW of wind power in 2009.

The total project investment is estimated between US$75 to US$80 million.

The quality of the wind resource at the site suggests an average utilization factor of approximately 40%, which should allow the project to generate earnings before interest, taxes, depreciation and amortization of approximately $9 million annually.

The sale enables Northland to realize the project's economic returns at an earlier stage and focus its resources on other larger scale development and construction projects. Northland will use the proceeds for general corporate purposes, and to fund a portion of its investments in Nordsee One and the Grand Bend Wind Farm.

During the last two weeks we have reported about several wind projects globally:

• 50 MW wind power project in Jhimpir Wind Corridor - Pakistan
• 22 MW Iwafune Offshore Wind Farm - Japan
• 51 MW Adama I wind power project - Ethiopia
• 153 MW Adama II wind power project - Ethiopia
• 120 MW wind farm in Ayisha - Ethiopia
• 120 MW Ashegoda wind farm - Ethiopia
• Triton Knoll Offshore Wind Farm - United Kingdom
• 140 MW Khobab Wind Farm - South Africa
• 140 MW Loeriesfontein 2 Wind Farm - South Africa
• 80 MW Noupoort Wind Farm - South Africa