Mr. Arun Banskota reports

ALGONQUIN POWER & UTILITIES CORP. ANNOUNCES INAUGURAL ASSET RECYCLING TRANSACTION

Algonquin Power & Utilities Corp. has entered into an agreement to sell ownership interests in a portfolio of operating wind projects in the United States and Canada to InfraRed Capital Partners, an international infrastructure investment manager that is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life Financial Inc.

This inaugural asset recycling transaction consists of the sale of a 49-per-cent ownership interest in three operating wind facilities in the United States totalling 551 megawatts of installed capacity and an 80-per-cent ownership interest in a 175-megawatt operating wind facility in Canada. The U.S. facilities consist of the Odell wind facility in Minnesota, the Deerfield wind facility in Michigan and the Sugar Creek wind facility in Illinois. The Canadian facility is the Blue Hill wind facility in Saskatchewan. Algonquin Power & Utilities will continue to oversee day-to-day operations and provide management services to the facilities.

Total cash proceeds to Algonquin Power & Utilities from this asset recycling transaction are expected to be approximately $277-million (U.S.) for the U.S. facilities and approximately $107-million for the Blue Hill wind facility, subject to customary closing adjustments.

Through its ability to develop, manage construction and perform asset management services, upon closing, Algonquin Power & Utilities will have added incremental shareholder value from these four wind projects. This first asset recycling transaction highlights the value creation potential of Algonquin Power & Utilities' greenfield pipeline of 3,800 megawatts of solar and wind projects and 1,700 megawatt-hours of storage projects announced at its December, 2021, investor day. Asset recycling, leveraging the scale of Algonquin Power & Utilities' existing renewable energy portfolio, is a key component of the previously announced $12.4-billion capital plan from 2022 through the end of 2026.

"This announcement represents a meaningful step in achieving the objective set out at our 2021 investor day to partner with highly reputable institutional partners as we execute on our five-year capital program and our renewable energy growth agenda," said Arun Banskota, president and chief executive officer of Algonquin Power & Utilities. "We are excited to be partnering with InfraRed, a global leader in the infrastructure and renewable energy market. We see strong alignment between InfraRed's long-term investment strategy and cost of capital and our renewable energy experience and focus on safety, reliability and accretive growth."

Closing of the transaction is subject to receipt of certain regulatory approvals and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2022. As a result of this transaction and projected close by the end of 2022, the company does not intend to issue any equity through the remainder of 2022 and has ceased issuances under its at-the-market equity program. Further, with the successful signing of this inaugural asset recycling transaction, the company plans to evaluate further asset sales as a core part of its capital plan for 2023 and beyond.

CIBC Capital Markets acted as exclusive financial adviser to Algonquin Power & Utilities.

About Algonquin Power & Utilities Corp.

Algonquin Power & Utilities, parent company of Liberty, is a diversified international generation, transmission and distribution utility with over $17-billion of total assets. Through its two business groups, the regulated services group and the renewable energy group, Algonquin Power & Utilities is committed to providing safe, secure, reliable, cost-effective and sustainable energy and water solutions through its portfolio of electric generation, transmission and distribution utility investments to over one million customer connections, largely in the United States and Canada. Algonquin Power & Utilities is a global leader in renewable energy through its portfolio of long-term contracted wind, solar and hydroelectric generating facilities. Algonquin Power & Utilities owns, operates and/or has net interests in over four gigawatts of installed renewable energy capacity.

Algonquin Power & Utilities is committed to delivering growth and the pursuit of operational excellence in a sustainable manner through an expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions and value-enhancing recycling of assets.

Algonquin Power & Utilities' common shares, Series A preferred shares and Series D preferred shares are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. Algonquin Power & Utilities' common shares, Series 2018-A subordinated notes, Series 2019-A subordinated notes and equity units are listed on the New York Stock Exchange under the symbols AQN, AQNA, AQNB, and AQNU, respectively.

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