- Northland Power Inc (TSX:NPI) is cancelling its previously announced Demonstrator Project in Germany
- The company planned to install two specialised turbines at its Deutsche Bucht offshore wind farm
- Due to an ongoing review of technical difficulties, Northland has chosen to permanently forgo the project
- The company stated that the cancelation will not affect the previously announced 2020 guidance
- Northland Power Inc (NPI) was up 1.73 per cent, with shares trading at C$24.81 and a market cap of $4.79 billion
Northland Power Inc (TSX:NPI) is cancelling its previously announced Demonstrator Project in Germany, due to technical issues.
As part of the project, the company planned to install two specialised turbines at its Deutsche Bucht wind farm.
Construction was paused late last year, when the company identified some technical issues with the turbines. As a result, the Northland initiated technical review to determine the extent of the issue.
The review isn’t set to complete until around the mid-year. This is further delaying Northlands development at the Deutsche Buct, therefore the company has decided to permanently forgo the installation.
The company has stated that the extended review is the main cause for the cancelling the project., However, the company did cite other considerations that remain unclear.
The company has already installed 31 wind turbines at the Deutsche Bucht, all of which are now operational. The site generates 252 megawatts and has contributed C$96 million in revenue, since it began in September.
The company was quick to point out that the cancelled project will not impact the previously announced 2020 estimated. This is because the contributions from the two cancelled turbines were not included in the initial report.
Northland’s management still estimate 2020’s full-year revenue to be around $1.25 billion. Although, the company has reduced the Deutsche Bucht’s estimated earnings by $15 million, down to around $241 million.
As well as the Deutsche Bucht wind farm, Northland operates the La Lucha solar project in Mexico and in developing another offshore wind farm in Taiwan.
Northland Power Inc (NPI) was up 1.73 per cent, with shares trading for $24.81 at 9:36am EST.