Innovative projects, minimum risk

Sustainability ranks high among Northland’s core values. We pursue a number of risk management practices to ensure we meet current and future obligations to customers, partners, employees, host communities and investors.

Focus: We stick to what we do best—develop clean and green power generation projects.

Disciplined development: We pursue only projects for which long-term off-take sales agreements are available with creditworthy off-takers, usually government-backed entities. And we pursue only projects projected to meet our financial return threshold.

Non-recourse financing: Northland uses non-recourse project financing. This limits our exposure to our equity investment in each project and insulates the rest of our business from problems with a specific project. Non-recourse lenders also submit projects to their own due diligence, adding layers of risk management. Other project-related risk-reduction strategies include pursuing fixed-rate financing and ensuring cash flow from the initial PPA will fully amortize the permanent project financing.

Comprehensive contracting: Northland structures projects around a comprehensive suite of contracts to minimize risk and uncertainty, assure revenues and reduce costs. We choose construction partners with long experience and financial strength. We use proven technology and typically enter into long-term maintenance contracts with OEMs to ensure equipment reliability and long life.

Long-life assets with matching sales agreements: We pursue revenue security through developing only long-life assets matched with long-term supply agreements with creditworthy, government-backed off-takers. New projects typically provide positive cash flows for 20 years or more from start-up. We build and maintain our facilities for maximum economic life.