Northland’s development process

Northland has been developing energy generation projects since 1987. We fund all our development activities internally. Initial plant design and engineering are also done in-house.

Our strategy is to identify the need for a project early and to anticipate where the generation capacity will be required, what the procurement process will be and which technologies will be favoured and to anticipate and address whatever concerns the host community may have. A good example is our Thorold cogeneration plant, which was identified as an opportunity in the 1990s and nurtured for years before winning an Ontario Power Authority proposal request in 2006. At its completion in 2010, it became one of the largest plants of its type in Ontario.

The overall development activity at Northland (see the diagram below) involves managing several projects at various stages with varying probabilities of success. We constantly review each project’s feasibility until the PPA is signed and construction contracts are in place. The process has “off ramps” at each stage, and our new project attrition rate is high.

The process for each project is structured around a complex collection of contracts. The overall aim is to match terms, especially with the PPA, so positive cash flow is assured over a long period. We also ensure any non-government customers (for example, steam hosts) are creditworthy, contractors are experienced and financially sound, technology is proven and risks are assigned to those best able to manage or absorb them.