Mr. Michel Letellier reports

INNERGEX ACHIEVES TAX EQUITY COMMITMENT CLOSE FOR THE BOSWELL SPRINGS WIND PROJECT

Innergex Renewable Energy Inc. has closed a $322.7-million (U.S.) ($441.6-million) tax equity commitment (upfront investment) with J.P. Morgan and Capital One (the tax equity investors) for the 329.8-megawatt Boswell Springs wind project located in Wyoming, United States. The tax equity investors have committed to finance the upfront investment at substantial completion and to make cash payments as production tax credits are generated (PAY-GO) over a 10-year period.

"This tax equity commitment completes the financing activities of the Boswell Springs project, one of Innergex's short-term funding initiatives to increase the corporation's liquidity," said Michel Letellier, president and chief executive officer of Innergex. "We are proud to partner with J.P. Morgan and Capital One for the first time as tax equity investors as this demonstrates Innergex's ability to attract new investors. We have all the necessary financial support to successfully build this large wind project by the end of 2024. Progress on site is well under way and our teams are dedicated to delivering the project within the given time frame. Over the years, Innergex has proven its expertise in creating accretive financial structures that include non-recourse construction financings and tax equity investments to support its expansion. We believe that we are well positioned to continue our growth as a developer of profitable renewable energy projects in the United States and our other key markets."

The construction of Boswell Springs is progressing well, with the 2023 activities coming to an end. The installation of the collection system is 90 per cent complete, while splicing is under way. Work on the access roads is complete, and all foundations have been poured. The generation-tie line is also advancing, with over 80 per cent of structures in place and stringing of the wire at 61 per cent.

On July 14, 2023, Innergex announced the closing of a $534-million (U.S.) ($730-million) construction financing including a $322.7-million (U.S.) ($441.6-million) tax equity bridge loan and a $203-million (U.S.) ($278-million) 10-year non-recourse term loan for the Boswell Springs wind project, of which $103-million (U.S.) ($141-million) was used to refinance equity over contributed by Innergex and reduce its corporate revolving credit facility.

Operating cash flows from the Boswell Springs wind project are expected to reach approximately $22-million (U.S.) ($30-million) on an annual basis. In addition, the project is expected to benefit from 110 per cent of the production tax credits (PTCs), which should contribute an annual approximative $42-million (U.S.) ($57-million), indexed to inflation over a 10-year period, including the 10-per-cent energy community PTC bonus. The project is currently planned to also be eligible for the 10-per-cent domestic content PTC bonus which could contribute annually an additional $3.8-million (U.S.) ($5.2-million) indexed to inflation over 10-year period and be eligible for transferability.

The electricity to be produced by the Boswell Springs wind project will be sold under a 30-year, 320 MW busbar power purchase agreement signed with PacifiCorp, a Berkshire Hathaway subsidiary. The commercial operation date is scheduled for Q4 2024.

About Innergex Renewable Energy Inc.

For over 30 years, Innergex has believed in a world where abundant renewable energy promotes healthier communities and creates shared prosperity. As an independent renewable power producer which develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities, Innergex is convinced that generating power from renewable sources will lead the way to a better world. Innergex conducts operations in Canada, the United States, France and Chile, and manages a large portfolio of high-quality assets currently consisting of interests in 85 operating facilities with an aggregate net installed capacity of 3,676 megawatts (gross 4,226 megawatts) and an energy storage capacity of 159 megawatt-hours, including 40 hydroelectric facilities, 35 wind facilities, nine solar facilities and one battery energy storage facility. Innergex also holds interests in 13 projects under development with a net installed capacity of 760 megawatts (gross 849 megawatts) and an energy storage capacity of 605 megawatt-hours, five of which are under construction, as well as prospective projects at different stages of development with an aggregate gross installed capacity totalling 9,352 megawatts. Its approach to building shareholder value is to generate sustainable cash flows, provide an attractive risk-adjusted return on invested capital and distribute a stable dividend.

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