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Innovative projects, carefully managed 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, lenders and investors. These include:

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

Disciplined development: We pursue only projects that meet our financial return threshold, and for which long-term sales agreements are available with creditworthy off-takers, including government-backed entities. We evaluate all projects regularly against these criteria and their probability of success.

Prudent financing: Northland primarily uses non-recourse project financing. This limits our exposure to our equity investment in each project and insulates the rest of our business in the unlikely event of problems with a specific project. Non-recourse lenders also submit projects to their own due diligence, adding layers of risk oversight. Other risk-reduction financing strategies include pursuing fixed-rate loans 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 who have long experience and are strong financially. 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 by developing only long-life assets matched with long-term energy supply agreements with creditworthy off-takers. New projects typically provide positive cash flows for 20 years or more from start-up. We build high quality facilities and maintain them well for maximum economic life.