EDC to lend USD 125m for Northland's 600-MW Gemini wind scheme

Jun 18, 2014 - Ottawa-based Export Development Canada (EDC) said Tuesday it would provide a EUR-125-million (USD 169m) loan to Canadian firm Northland Power Inc (TSE:NPI) for the 600-MW Gemini wind project in the North Sea.

EDC has defined the cleantech industry as a corporate priority, it noted.

The proceeds will fund Northland Power’s acquisition of a 60% interest in the project. At the end of January, the Canadian firm agreed to buy Netherlands-based Typhoon Offshore’s 5% stake in the 600-MW scheme, thus boosting its stake to 60%. The other shareholders are Siemens Financial Services with 20% in the project, Van Oord Dredging and Marine Contractors BV and NV HVC, each with a 10% interest.

The Gemini scheme, off the coast of the Netherlands in the North Sea, will be financed through an EUR-2.8-billion term loan from 10 international commercial banks. German Siemens (ETR:SIE), Van Oord Dredging and Marine Contractors BV and NV HVC have each committed to invest EUR 400 million in equity.

Construction of the 600-MW wind complex is expected to be launched at the end of this year, while commercial operations are scheduled for 2017. Siemens will supply equipment and will also operate and maintain the wind farm.

When up and running, the wind park will be able to meet the power needs of 785,000 households annually and help save 1.3 million tonnes of carbon dioxide (CO2) emissions.

(EUR 1.0 = USD 1.355)

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