NU E Power signs LOI with Green Harbor

Executive Summary

• NU E Power Corp. has entered into a Letter of Intent (LOI) with Green Harbor Partners Corp. to sell a 503.5 MW utility-scale solar and battery energy storage (BESS) portfolio in Alberta, consisting of the Lethbridge Two, Lethbridge Three, and Hanna projects.
• The transaction represents NU E's first asset monetization milestone, allowing the company to recycle capital while retaining a potential long-term royalty or carry interest in the assets.
• The deal structure includes phased compensation based on development milestones, with potential total consideration ranging from $50,000 to $700,000 USD per MW depending on project progress (interconnection, PPA coverage, and shovel-ready status).

Key Details

• Transaction Parties: NU E Power Corp. (Seller/Developer) and Green Harbor Partners Corp. (Buyer/Strategic Partner).
• Assets: Lethbridge Two, Lethbridge Three, and Hanna solar projects in Alberta.
• Capacity: Combined 503.5 MW alternating current (AC) of utility-scale solar generation with integrated battery energy storage systems (BESS).
• Buyer Profile: Green Harbor Partners is a Korea-based private equity firm managing over 2.5 GW of global solar and wind assets.
• NU E Investment to Date: Approximately $2.6 million USD (or $5,150 USD per MW) in invested capital; approximately $3.6 million CAD total capital advanced.
• Compensation Structure (Per MW):
  • Phase 1 (Current Status): $50,000 - $150,000 USD (Achieved upon AESO interconnection approval).
  • Phase 2 (Tier 2): $158,000 - $395,000 USD (Achieved upon securing 70% Power Purchase Agreement (PPA) coverage).
  • Phase 3 (Shovel Ready): $395,000 - $700,000 USD (Maximum potential compensation).
• Payment Schedule:
  • 10% upon signing of the final purchase agreement.
  • 50% upon full fulfillment of closing conditions.
  • 30% upon notice to proceed.
  • 10% upon commercial operation.
• Strategic Terms: NU E retains the option to maintain a royalty interest or carry in the project, aligning its economic interest with long-term asset performance.
• Future Partnership: The LOI establishes a foundation for a long-term strategic partnership between NU E and Green Harbor to develop, finance, and operate large-scale renewable assets globally, including Latin America, Asia, Europe, and Africa.
• Conditions Precedent: Acquisition is subject to customary development milestones, financing conditions, and regulatory approvals.

Notable Quotes

• Jay Lee, CEO, Green Harbor Partners: "Green Harbor is pleased to announce the formation of a highly strategic partnership with NU E. This marks an important initial step in our evaluation and participation in the Alberta energy market... We believe NU E's disciplined approach to energy development, infrastructure and market execution aligns well with our long-term objectives."
• Broderick Gunning, CEO, NU E Power: "This LOI represents a pivotal moment for NU E. We have invested significant capital to advance these projects to institutional standards and this marks the first planned monetization of a NU E-developed asset. Our approach is not simply to sell projects, but to structure transactions that preserve long-term participation through royalties or carried interests where appropriate."