TSX:NPI - Post Discussion
Post by
BayWall on Sep 29, 2023 4:05am
Partnership strategy is key
Northland had to identify which projects to go after.
Financially strong partnerships are important, as Northland by themselves would no be able to undertake these projects. For Hai Long, Yushan Energy was there in 2013 well before Northland took notice. Selldown to Gentari brought on board a strong financial partner. Mitsui's 40% provided the other anchor. Critical partners who can finance well.
In Poland, Orlen who initially had 100% of the project, was looking for a partnership deal. Northland showed up. Orlen, a big name in the region.
We could probably see the same with others in South Korea and Japan. The cost and size of wind-farms necessitate the partnership strategy.
Can't ignore the long-term offtake agreements. A lot of wheeling and dealing behind the scenes is involved. All the financial institutions involved to effect financing is mind boggling.
Northland takes the credit in the end-- "....demonstrates the support from the global financial community and reflects their confidence in Northland and our ability to develop, procure, construct and finance large and complex offshore wind projects".
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