Northland Power Inc. has elected to permanently forego the installation of the Demonstrator Project, part of the Deutsche Bucht offshore wind project located in the German North Sea.
As announced on February 25, 2020, the installation of the Demonstrator Project was paused in the fourth quarter of 2019 following the identification of technical issues. An evaluation of the cause of the technical issues is under way and will not be completed until mid-year.
Deutsche Bucht comprises 31 monopile foundations and turbines, which were installed and operational ahead of schedule, with a total production capacity of 252 MW. The 31 turbines have been generating power since the end of September 2019 and contributed pre-completion revenues of $96 million in 2019.
The decision to not proceed with the Demonstrator Project will not impact Northland’s 2020 financial guidance, since the contributions from the Demonstrator Project were excluded from the guidance estimates provided. For 2020, management continues to estimate adjusted EBITDA to be in the range of $1.1 billion to $1.2 billion.
Northland owns or has an economic interest in 2,429 MW (net 2,014 MW) of operating generating capacity and 382 MW of generating capacity under construction. Northland also owns a 60% equity stake in the 1,044 MW Hai Long projects under development in Taiwan and operates a regulated utility business in Colombia.
