Innergex considers itself a “serious and important” candidate to become a potential partner in the deployment of Hydro-Québec’s new wind strategy.
The renewable energy producer is “very well positioned” thanks to its experience, its knowledge of the Quebec market and the field, as well as its relations with the First Nations, according to its president and CEO, Michel Letellier.
“We will certainly be a very, very important and serious candidate to be a partner,” he said on a conference call with financial analysts to discuss second-quarter results Thursday.
The state-owned company announced last May that it is becoming a project manager for large-scale wind projects in order to accelerate the development of this energy. It wants to deploy 10,000 megawatts (MW) of additional wind capacity by 2035.
The new strategy also aims to include First Nations and municipalities as shareholders from the early stages of project planning, in particular to ensure social acceptability.
As for the role of industry, it would be called upon to offer its expertise, as needed, at the stages of development, construction or operation.
In Mr. Letellier’s eyes, Innergex meets most of the characteristics sought in potential private sector players.
“From what I understand, the criteria will be based on knowledge of the terrain, the ability to build, experience in construction in Quebec and with First Nations. So, all these criteria correspond very well to our capacity and that is why I think we will be a serious potential partner with these megaprojects,” he said.
The Longueuil company already has certain wind energy and hydroelectricity projects to its credit, either completed or under development in partnership with First Nations and with Hydro-Québec as a client.
Let us recall that Hydro-Québec is the main shareholder of Innergex renewable energy. The state-owned company holds 19.9% of the company.
Earlier this summer, Hydro-Québec announced a first project under its new wind power model. It is partnering with the Pekuakamiulnuatsh First Nation, the Atikamekw of Wemotaci and the Domaine-du-Roy RCM to develop the Chamouchouane zone in Saguenay—Lac-Saint-Jean.
This vast territory could accommodate up to 3,000 MW of wind capacity. Investments could total $9 billion.
Financial results
In the second quarter of 2024, Innergex’s revenues in the hydroelectric, wind and solar energy sectors decreased by 7.0% to $81.93 million, by 0.65% to $85.53 million and by 13.0% to $29.67 million, respectively.
The Quebec company reported a net profit of $23.01 million, down 7.2% from the same date last year.
Excluding non-recurring items, the company posted an adjusted net loss of $3.86 million, compared to adjusted net income of $11.26 million in the same quarter in 2023.
As for earnings before interest, taxes, depreciation and amortization (EBITDA), it was $172.91 million, compared to $186.99 million a year earlier, a drop of 7.5%.