Q3 2024 Northland Power Inc Earnings Call

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Unknown Executive: Welcome to the Northland Power conference call to discuss the third quarter 2024 results. As a reminder, this conference is being recorded on Thursday, November 14, 2024 at 10 a.m. Eastern.

Okay.

Speaker Change: Welcome to the Northland Power conference call to discuss the third quarter 'twenty 'twenty four result.

Speaker Change: As a reminder, this conference is being recorded on Thursday November 14th 2024 at 10 a M eastern.

Unknown Executive: Conducting this call for Northland Power are John Brace, Interim President and CEO, and Adam Beaumont, Interim Chief Financial Officer.

Speaker Change: Conducting this call for Northland power are John brace interim President and C E L F.

Speaker Change: And Adam Beaumont interim Chief Financial Officer Bill.

Unknown Executive: Before we begin, Northland's management has asked me to remind listeners that all figures presented are in Canadian dollars and to caution that certain information presented in responses to questions may contain forward-looking statements that include assumptions and are subject to various risks. Actual results may differ materially from management's expected or forecasted results.

Speaker Change: Before we begin Northland <unk> management has asked me to remind listeners that all figures presented are in Canadian dollars and to caution that certain information presented.

Answers to questions may contain forward looking statements that include assumptions and are subject to various risks.

Actual results may differ materially from management's expected or forecasted results. Please read the forward looking statements section in yesterday's news release announcing Northland Power's results and be guided by its contents, when making investment decisions or recommendations.

Unknown Executive: Please read the forward-looking statements section in yesterday's news release announcing Northland Power's results and be guided by its contents when making investment decisions or recommendations. The release is available at www.northlandpower.com.

Speaker Change: The release is available at Www Dot Northland power Dot Com I will now turn the call over to Mr. John Bray.

John Brace: I will now turn the call over to Mr. John Brace. Thank you very much, Operator. Thank you for joining us this morning for Northland's third quarter 2024 earnings call. We continue successfully to execute on the strategy, set out an investor day, and we are pleased with the performance for the first nine months of the year. In addition, during the quarter, our team achieved several important milestones. Our $16 billion construction program remains on track, our full year of financial guidance stands, and we've made great strides to advance our growth pipeline to capture the strong growing demand for power we see globally.

John Bray: Thank you very much operator, thank you for joining us this morning for Northland third quarter 'twenty towards Q4 earnings call we.

John Bray: We continue to successfully execute on this strategy set out in Investor Day, and we are pleased with the performance for the first nine months of the year.

John Bray: In addition, during the quarter our team achieved several important milestones.

John Bray: Our 16 billion dollar construction program remains on track our full year financial guidance stands and we've made great strides to advance our growth pipeline to capture the strong growing demand for power, we see globally.

John Brace: Before we get into details, I want to reiterate the paramount importance of health and safety across our entire business and all our operations. An incident this past summer at our high lawn project, which I'll speak about shortly, starkly emphasized the critical importance of health and safety standards. We continue to strive to ensure all individuals working across our projects are kept safe.

John Bray: Before we get into details I want to re iterate, the paramount importance of health and safety across our entire business and all our operations.

John Bray: And then so then this past summer at our high long project, which I'll speak about shortly starkly emphasize the critical importance of health and safety standards.

John Bray: We continue to strive to ensure all individuals working across our projects are kept safe.

John Brace: Now, moving on to our quarterly results and business updates. As reflected in our press release yesterday, our 2024 financial outlook remains within the guidance range. Adam Beaumont, our Interim Chief Financial Officer, will provide more details on financial performance later. We are pleased with the progress of our 2.4 gigawatt construction pipeline that remains on track and on budget. This includes Heilong and Baltic Power, our two large offshore wind projects in Taiwan and Poland, respectively, both accomplishing large de-risking milestones this quarter. We are also making great progress as we near the final stages of construction for Oneida, one of Canada's largest battery energy storage projects, which is expected to be operating in 2025.

John Bray: Now moving onto our quarterly results and business updates.

John Bray: As reflected in our press release yesterday, our 'twenty 'twenty four financial outlook remains within the guidance range.

John Bray: Adam Beaumont, our interim Chief Financial Officer will provide more details on financial performance later.

John Bray: We are pleased with the progress of our 2.4 gigawatt construction pipeline that remains on track and on budget.

John Bray: This includes high long and Baltic power, our two large offshore wind projects in Taiwan, and Poland, respectively. Both accomplishing large derisking milestones this quarter.

John Bray: We are also making great progress as we near the final stages of construction for one item one of Canada's largest battery energy storage projects, which is expected to be operating in 2025.

John Brace: In more detail, starting with Heilong, which I visited with several board members about a month ago.

John Bray: In more detail starting with high long.

John Bray: Excuse me, which I visited with several board members about a month ago.

John Brace: As most of you are aware, we experienced a tragic incident at the Heilong onshore substation on August 20th, a release of carbon dioxide from the fire suppression system affected 17 on-site workers employed by one of the project's subcontractors and resulted in three fatalities. Established emergency response protocols were enacted properly and activity at the onshore substation was suspended to comply with investigations to determine the root cause of the incident. While these investigations remain ongoing, work of the onshore substation has resumed safely and is progressing according to recovery plans. With energization expected in the first quarter of 2025.

John Bray: As most of you are aware, we experienced a tragic incident at the highest long onshore substation on August 20th.

John Bray: That release of carbon dioxide from the fire suppression system effective 17 on site workers employed by one of the projects sub contractors and resulted in three fatalities.

John Bray: Establishing emergency response protocols were enacted properly and activity at the onshore substation was suspended to comply with investigations to determine the root cause of the incident.

John Bray: These investigations remain ongoing work or the onshore substation has resumed safely and is progressing according to recover very plans.

John Bray: With <unk> expected in the first quarter of 2025.

John Brace: The incident has not created any significant impact on the project's overall schedule, and costs are still expected to be within our original budget. The project continues to make progress with in-water construction work for the 2024 season being almost completed. This quarter marked a significant de-risking milestone for the project, as we installed pin piles at 37 turbine locations and the jacket foundations at 35 of 37 turbines planned for 2024, which is about half of the project's turbines. In fact, the final two jackets are out at sea for installation over the next couple of days. As a consequence, we will be well ready to install turbines when they start arriving next year.

John Bray: The incident has not created any significant impact on the project's overall schedule and costs are still expected to be within our original budget.

John Bray: Project continues to make progress within water construction work for the 'twenty 'twenty four season being almost completed.

John Bray: This quarter marked a significant derisking milestone for the project as we installed pen pals at 37 turbine locations and the jacket foundations at 35 or 37 turbines plan for 'twenty 'twenty, four which is about half of the project's turbines. In fact, the final two jackets are out at sea.

John Bray: Our installation over the next couple of days.

John Bray: As a consequence, we will be well ready to installed turbines when they start arriving next year.

John Brace: Manufacturing also progressed on the first sets of towers, generators, and nacelles, with some already completed. Excitingly, we are estimating that we're less than 12 months away from the first power generation, a testament to the milestones achieved this past quarter.

John Bray: Manufacturing also progressed on the first sets of towers generators in the nave cells with some already completed.

Excitingly, we are estimating that were less than 12 months away from the first power generation a testament to the milestones achieved this past quarter.

John Brace: Overall, the project continues to progress on time and on budget, and we look forward to full commercial operations in early 2027.

John Bray: Overall, the project continues to progress on time and on budget and we look forward to full commercial operations in 2027 early 2020 seven.

John Brace: Moving now to the Baltic Power Offshore Project in Poland. It continues to make good progress on the fabrication of onshore and offshore substations, foundations, export cables, turbine components, and interarray cables as planned. The first sets of monopiles, cables, and transition pieces have been completed and are en route to the project site. Turbine component manufacturing and construction of both the onshore substation and the operations and management facility are underway. Major in-water offshore construction activity is expected to start in early 2025. As with Heilong. Baltic Power continues to progress on time and on budget.

Moving now to the Baltic power offshore project in Poland.

John Bray: It continues to make good progress on the fabrication of onshore and offshore substations foundations export cables turbine components and inter array cables as planned.

The first sets of monopoles cables and transition pieces have been completed and on route to the project site.

John Bray: By end component manufacturing and construction of both the onshore substation and the operations and management facility are underway.

John Bray: A major in water offshore construction activity is expected to start in early 2025.

John Bray: As with high long.

John Bray: <unk> power continues to progress on time and on budget full commercial operations continued to be expected by the end of 'twenty 'twenty six.

John Brace: Full commercial operations continue to be expected by the end of 2026.

John Brace: And lastly, an update on the Unida project here in Ontario. I'm pleased to say that construction is in its final months with all major pieces of equipment on site. All 278 megapacks and 70 medium voltage transformers are installed with the high voltage transformers in the process of being installed and connected. All cabling and grid interconnection works are being finalized with the 230 kilovolt cable being pulled across the new towers towards the site for interconnection and commissioning activities. Again, we continue to track on-time and on-budget, and the full commercial operation remains on plan for 2025.

John Bray: And lastly, an update on the announced either project here in Ontario.

John Bray: I am pleased to say the construction is in its final months with all major pieces of equipment onsite, all 278, Mega pads and 70 medium voltage Transformers are installed with the high voltage transformers in the process of being installed and connected.

John Bray: Okay, cabling and grid interconnection works are being finalized with the 230 kilovolt cable being pulled across the new towers towards the site for interconnection and commissioning activities.

John Bray: Again, we continue to track on time and on budget with full commercial operation remains on plan for 2020 five.

John Brace: As I just outlined, we have good momentum across our construction programs and continue to be vigilant, disciplined and focused on execution. Once completed, these three projects are expected to provide a material boost to Northland's adjusted EBITDA and cash flow.

John Bray: As I just outlined we have good momentum across our construction programs and continue to be vigilant disciplined and focused on execution.

John Bray: Once completed these three projects are expected to provide a material boost in north of <unk> adjusted EBITDA.

John Brace: Turning to growth, we remain active in identifying new opportunities in our core markets. as we also continue to advance our development pipeline. starting with Onshore. Renewables business. We're focused on our development work in Alberta, Ontario, in New York. Regarding Alberta, we announced last quarter as a post-quarter news item that we signed a 15-year bilateral offtake agreement for an 80-megawatt, two-hour Jurassic battery storage project with the Alberta Schools Commodities Purchasing Consortium. This late stage project continues to advance towards the signing of EPC contracts and battery supply contracts in the coming months. We are reviewing the newly announced LT2 guidelines in Ontario and are making progress on battery, onshore renewable and natural gas opportunities to submit into the LT2.

John Bray: Hello.

Turning to growth, we remain active in identifying new opportunities in our core markets.

John Bray: As we also continue to advance our development pipeline.

John Bray: With onshore.

John Bray: Renewables business, we're focused on our development work in Alberta, Ontario, and New York.

John Bray: Regarding Alberta, we announced last quarter as a post quarter news item that we signed a 15 year bilateral offtake agreement for 80 megawatt to our Jurassic battery storage project with the Alberta schools commodities purchasing consortium.

John Bray: This late stage projects continues to advance towards the signing of EPC contracts and battery supply contracts in the coming months.

John Bray: Reviewing the newly announced L. T. Two guidelines in Ontario, and are making progress on battery onshore renewable and natural gas opportunities to submit it into the L. T to.

John Brace: Lastly, we await the final results of the last NYSERDA auction in New York. With regard to our offshore wind business, we continue to be active with our early stage projects in a disciplined and systematic manner. For example, at Sprad Namara in Scotland, our 900 megawatt fixed bottom offshore wind project, we've completed the environmental scoping, we've received a generator license, and we have completed phase one of public consultations on the project. We closely monitor our core markets for attractive investment opportunities, including Poland, where we recently saw the announcement of new auction targets that have increased from 5 gigawatts to 12 gigawatts for 2025 through 2031.

John Bray: Lastly, we await the final results of the last night sort of auction in New York.

With regard to our offshore wind business, we continued to be active with our early stage projects in a disciplined and systematic manner.

John Bray: For example at Sprout Nomura in Scotland are 900 megawatt fixed bottom offshore wind project. We have completed the environmental scoping. We have received a generator license and we have completed phase one of public consultations on the project.

John Bray: We closely monitor our core markets for attractive investment opportunities, including Poland, where we recently saw the announcement of new auction targets that have increased for five gigawatts to 12 Gigawatts for 2025 through 20.

John Bray: 31.

John Brace: Finally, in our Thermal and Utilities Business Unit, we continue to pursue a number of gas fire opportunities. At Northland, we maintain a strong focus on only moving forward with profitable projects in our core markets, and we continue to see good opportunities ahead that can enhance shareholder value.

John Bray: Finally in our thermal and bits and utilities business unit, we continue to pursue a number of gas fired opportunities.

John Bray: At Northland, we maintain a strong focus on only moving forward with profitable projects in our core markets and we continue to see good opportunities ahead that can enhance shareholder value.

John Brace: Moving on to other significant third quarter events. As noted on our last call in June 2024, our offshore wind facility, Gemini, experienced an unplanned outage of one of its two export cables. The in-water cable repair was successfully completed in September. You'll see the timing impact in our third quarter results in that we incurred repair costs this quarter, but we expect the insurance proceeds to be received in the fourth quarter. As we noted earlier, this outage occurred during the lower production season, and we were able to redirect most production by the second export cable at the Wynn Park.

John Bray: Moving onto other significant third quarter events.

John Bray: As noted on our last call in June 'twenty 'twenty, four our offshore wind facility Gemini experienced an unplanned outage at one of its two export cable for the in water cable repair was successfully completed in September.

John Bray: You'll see the timing impact in our third quarter results and that we incurred repair costs. This quarter, but we expect the insurance proceeds to be three we'd be received in the fourth quarter.

John Bray: As we noted earlier this outage occurred during the lower production season, and where we were able to redirect.

John Bray: Most production by the second export cable is at the Wynn Park I.

John Brace: I would like to acknowledge the exceptional work from our operations team to get the facility back online quickly.

John Bray: I would like to acknowledge the exceptional work from our operations team to get the facility back online quickly.

John Brace: I also want to address some of the questions we've been asked about the U.S. presidential election and what this might mean for Northland. Firstly, I think it's important to remind you that we all that we took a strategic decision not to enter the U.S. offshore wind market many years ago and therefore have no exposure on this front. This is an area which many pundits see as a potential challenge and risk under the incoming government. Beyond that, I can't add much to the discussion beyond what others have said. However, to summarize, while it's unclear at this point as to what policies and regulations may change under the new administration, we and other market participants believe that it will be difficult to repeal the IRA entirely, given associated benefits with that program have been provided to many states in the U.S., the majority of which are Republican.

John Bray: I also want to address some of the questions. We've been asked about the U S presidential election, and what this might mean for Northland.

John Bray: Firstly I think it's important to remind you that we all that we took the strategic decision not to enter the U S offshore wind market many years ago, and therefore have no exposure on this front. This is an area, which many pundits see as a potential challenge and risk under the incoming government.

John Bray: Beyond that I can't add much to the discussion beyond what others have said however to summarize while it's unclear at this point as to what policies and regulations may change under the New administration, we and other market participants believe that it will be difficult to repeal the I R. A entirely given associated.

John Bray: Benefits with that program have been provided to many states in the U S. The majority of which are Republican.

John Brace: And I'd like to just summarize some of the facts we see in front of us. First of all, we all know there's an incredible demand for new electricity sources for electrification of commercial, industrial, residential, personal use, data centers, AI, and such. There's going to be a need for an immense amount of steel in the ground in the United States. And secondly, as I mentioned, the IRA affects and is of large benefit to many Republican states, so it'd be hard to scrap it all together. Beyond that, I would say that our operating projects in the United States, Bluestone and Ball Hill, are not at any risk.

John Bray: And I'd like to just summarize some of the facts, we see in front of US first of all we all know there's an incredible demand for nuclear electricity sources for electrification of commercial industrial residential.

John Bray: Personal use data centers, AI and such there's going to be a need for an immense amount of steel in the ground in the United States.

John Bray: And secondly, as I mentioned, the I R a effects and as a large benefit to many Republican states, so it'd be hard to scrap it all together.

John Bray: Beyond that I would say that our operating projects in the United States Bluestone and ball Hill are or are not at any risk. We also have several projects in our development pipeline, which has a certain degree of advancement, which probably protect them from any future changes.

John Brace: We also have several projects in our development pipeline which have a certain degree of advancement, which probably protect them from any future changes. With the remaining projects in our pipeline, we will take a measured approach, watching what happens and exploring the development of those projects as the facts become clear on the ground.

John Bray: With the remaining projects in our pipeline, we will take a measured approach watching what happens and exploring the development of those projects is the facts become clearer on the ground.

John Brace: Lastly, I want to update you on our global search for a new president and CEO. In short, we are very pleased with the progress we are making. I am optimistic that we will be closing out the search in the very near term. In the meantime, I would like to acknowledge the excellent job that our management team has been doing in continuing to successfully execute the strategy outlined at Investor Day and progressing our business plan.

John Bray: Lastly, I want to update you on our global search for a new president and CEO in short we are very pleased with the progress we are making.

I'm optimistic that we will be closing out the search in the very near term.

John Bray: In the meantime, I would like to acknowledge the excellent job that our management team has been doing and continuing to successfully execute the strategy outlined at Investor day, and progressing our business plan with that I will turn things over to Adam to give you a more detailed update on the financials.

Adam Beaumont: With that, I will turn things over to Adam to give you a more detailed update on the financials. Thank you, John, and good morning, everyone. Our results for the first nine months were strong and we're on track to achieve our four-year objectives. As you heard from John and disclosed in our second quarter results, our third quarter was in part impacted by the Gemini cable outage, where the cost of the repairs of approximately $11 million net to Northland is expected to be largely recovered by insurance proceeds in the fourth quarter. Ignoring the quarterly timing, the outage is expected to have approximately $5 million impact on Northland's free cash flow for the year.

Adam Beaumont: Thank you John and good morning, everyone. Our results for the first nine months were strong.

Adam Beaumont: And we're on track to achieve our full year objectives as you heard from John and disclosed in our second quarter results. Our third quarter was in part impacted by the Gemini cable outage, where the cost of the repairs of approximately $11 million net to Northland is expected to be largely recovered by <unk>.

Adam Beaumont: <unk> proceeds in the fourth quarter.

Adam Beaumont: Ignoring the quarterly timing the outage is expected to have approximately $5 million impact on Northland free cash flow for the year.

Adam Beaumont: Turning to adjusted EBITDA, this quarter, we generated $228 million, representing a 15% decrease compared to last year. The primary factors include a $19 million of lower operating results at our offshore wind facilities, primarily due to the cable outage at Gemini, lower overall wind production, and unpaid curtailments related to planned maintenance for grid outages at the Deutsche Buwe wind farm. Additionally, $19 million in gains from sell-downs of development assets in 2023, a $9 million decrease in the contribution from our Spanish portfolio due to market prices and the timing of band adjustment revenues. And lower contributions from our natural gas assets, primarily due to one charge from a historical PST tax assessment that occurred during the quarter.

Adam Beaumont: Turning to adjusted EBITDA This quarter, we generated $228 million, representing a 15% decrease compared to last year.

Adam Beaumont: Primary factors include a $19 million of lower operating results at our offshore wind facilities, primarily due to the cable outage at Gemini lower overall wind production.

Adam Beaumont: Unpaid curtailments related to planned maintenance for grid outages at the <unk> booth or Deutsche Boot wind farm.

Adam Beaumont: Additionally, $90 million.

Adam Beaumont: In gains from sell downs of development assets in 2023.

Adam Beaumont: $9 million decrease in the contribution from our Spanish portfolio due to market prices and the timing of band adjustment revenues.

Adam Beaumont: And lower contributions at <unk>.

Adam Beaumont: From our natural gas assets, primarily due to one charge from our historical P. S. T tax assessment that occurred during the quarter.

Adam Beaumont: These were partially offset by the contributions from our New York onshore wind facilities, which reached commercial operations in October of last year, and higher operating results at our Columbia utility EBSA from the rate escalation and foreign currency movement. On a nine-month, year-to-date basis, we generated adjusted EBITDA of $950 million, representing approximately a $100 million increase compared to last year. This increase is primarily due to the strong winds during the first part of the year, the addition of our New York wind assets, lower spending on early stage development projects, Offset by higher GNA, mainly from one-time management changes.

Adam Beaumont: These were partially offset by the contributions from our New York onshore wind facilities, which reached commercial operations in October of last year and higher operating results at our Columbia utility apps are from the rate escalation and foreign currency movements.

Adam Beaumont: On a nine year, sorry on a nine month year to date basis, we generated adjusted EBITDA of $950 million, representing approximately $100 million increase compared to last year.

Adam Beaumont: This increase is primarily due to the strong wins during the first part of the year he.

Adam Beaumont: The addition of our New York wind assets lower spending on early stage development projects.

Adam Beaumont: Offset by higher G&A, mainly from one time management changes.

Adam Beaumont: Our adjusted free cash flow and free cash flow during the quarter generated approximately $19 million and $1 million respectively. which were lower than last year. This decrease is primarily due to $49 million lower adjusted EBITDA, as I described earlier, a $7 million decrease from foreign exchange and interest rate hedges and other settlements that occurred in 2023, partially offset by $12 million of lower scheduled debt repayments, mainly at our Spain portfolio. On a per share basis, these figures translated into adjusted free cash flow of $0.08 and free cash flow of less than $0.01 in the quarter.

Adam Beaumont: Our adjusted free cash flow and free cash flow during the quarter generated approximately $19 million and $1 million respectively.

Adam Beaumont: Which were lower than last year. This decrease is primarily due to $49 million lower adjusted EBITDA as I described earlier.

Adam Beaumont: $7 million decrease from foreign exchange and interest rate hedges and other settlements that occurred in 2023.

Adam Beaumont: Partially offset by $12 million of lower scheduled debt repayments, mainly at our Spain portfolio.

Adam Beaumont: On a per share basis. These figures translated into adjusted free cash flow of eight cents and free cash flow of less than one cent in the quarter. This.

Adam Beaumont: This compared to $0.25 and $0.14 per share from last year. Similar to adjusted EBITDA, for the nine months ended, both our adjusted free cash flow and free cash flow were higher than the prior years as explained in our quarterly report. I wanted to highlight that this quarter we further strengthened our investment grade balance sheet by increasing the amount of liquidity on our corporate revolvers. As a result, we have $1.1 billion of available liquidity to support our future disciplined growth in core markets. A reminder, we continue to have most of our depth structure at the project level, which is primarily self-advertising over the life of the revenue contract.

Adam Beaumont: This compared to 25 and 14.

Adam Beaumont: <unk> per share from last year.

Adam Beaumont: Similar to adjusted EBITDA for the nine months ended both our adjusted free cash flow and free cash flow were higher than the prior years as explained in our quarterly report.

Yeah.

Adam Beaumont: I wanted to highlight that this quarter, we further strengthened our investment grade balance sheet by increasing the amount of liquidity on our corporate revolver.

Adam Beaumont: As a result, we have $1 $1 billion of available liquidity to support our future disciplined growth in core markets.

Adam Beaumont: A reminder, we continue to have most of our debt structure at the project level, which is primarily self amortizing over the life of the revenue contracts.

Adam Beaumont: As John mentioned, our three construction projects continue to progress, achieving a number of milestones this quarter. The three projects invested another $1 billion this quarter, amounting to $7 billion to date of the total of $16 billion in project costs. We reaffirmed our 2024 financial guidance, which remains within the disclosed guidance range. This quarter, we removed the indication of tracking to the higher end of the range. As the strong wind performance in the first half of the year was offset by softer offshore wind performance in Q3 and October. We are tracking to the upper half of the range and our financial, our final results will primarily depend on the wind performance during the quarter.

Speaker Change: As John mentioned, our three construction progress projects continued to progress achieving a number of milestones this quarter.

The three projects invested another $1 billion this quarter amounting to $7 billion to date of the total of $16 billion in project costs.

Speaker Change: We reaffirmed our 2024 financial guidance, which remains within the disclosed guidance range.

Speaker Change: This quarter, we removed the indication of tracking to the higher end of the range.

Speaker Change: As the strong win performance in the first half for the year was offset by softer offshore wind performance in Q3 and October.

We are tracking to the upper half of the range.

And our financial our final results will primarily depend on the wind performance during the quarter.

Adam Beaumont: Overall, we are satisfied with these results and the progress that we've made in the first nine months of the year.

Overall, we are satisfied with these results and the progress that we've made in the first nine months of the year. We're excited with the milestones that are coming up most notably the Oneida battery facility, achieving commercial operations and high long fragrance power, which is expected to be less than 12 months away.

Adam Beaumont: We're excited with the milestones that are coming up, most notably the Oneida battery facility achieving commercial operations and Heilong First Power, which is expected to be less than 12 months away.

John Brace: I will now turn the call back to John for concluding remarks.

John Bray: I will now turn the call back to John for concluding remarks.

John Brace: Thank you, Adam. To wrap up, we continue to stay focused on the safe and successful execution of our three construction projects.

John Bray: Adam.

John Bray: To wrap up we continue to stay focused on the safe.

John Bray: Pardon me and successful execution of our three construction projects as.

John Brace: As we look ahead. We remain excited about the growth opportunities for Northland, and we have a very positive outlook on the future. We continue to see global energy demand outpacing supply in key markets, with the pace of growth continuing to dominate industry headlines. This demand is driven by multiple tailwinds, including reshoring, electrification of the industrial, retail, and commercial sectors, artificial intelligence, and the growth and data centers, among others. I already mentioned our early views on the U.S. market, given the recent presidential election results. In Canada, demand is also being increasing. Over the last 12 months, Canada's three largest grids, being Ontario, Quebec, and Alberta, have revised their long-term power demand forecasts out to 2032.

John Bray: As we look ahead.

John Bray: We remain excited about the growth opportunities for Northland and we have a very positive outlook on the future.

John Bray: Continue to see global energy demand outpacing supply in key markets with the pace of growth continuing to dominate industry headlines.

John Bray: This demand is driven by multiple tailwind, including reassuring electric vacation of the industrial retail and commercial sectors artificial intelligence and the growth in data centers among others.

John Bray: I already mentioned our early views on the U S market given the recent presidential election results.

John Bray: In Canada demand has also been increasing over the last 12 months candidates three largest grids being Ontario, Quebec in Alberta, and revise their long term power demand forecast at 2032.

John Brace: In total, these large electricity markets in Canada are now forecasting a cumulative load increase of approximately 78 terawatt hours. From 2023 to 2032, an 18% increase. Longer-term load forecasts are even more aggressive, with Ontario alone forecasting and electricity demand to rise by 75% by 2050. With the continued and growing need for a robust supply of reliable and affordable energy globally, the opportunity for experienced and established developers like Northland is crystal clear. To balance this supply and demand trajectory, new natural gas-fired power plants, along with the new renewables, will be required to meet this required power load.

John Bray: In total these large electricity markets in Canada are now forecasting accumulative load increase of approximately 778 terawatt hours.

From 'twenty to 'twenty three to 2022 'twenty 30 to an 18% increase.

John Bray: Longer term load forecasts are even more aggressive with Ontario alone forecasting and electricity demand.

John Bray: Rise by 75% by 'twenty 50.

John Bray: With the continued and growing need for a robust supply of reliable and affordable energy globally, the opportunity for our experienced and established developers like Northland is crystal clear.

The balance of supply and demand trajectory, new natural gas fired power plants, along with the new renewables will be required to meet this required power load.

John Brace: A diversified energy mix of offshore, onshore wind, solar, storage, and natural gas positions us well to support the stability of energy grids as renewable technologies continue to mature. To create value for our shareholders, we pursue only the best opportunities in front of us with the right people to bring these projects to fruition. Our strong and talented teams have the knowledge, experience, and entrepreneurial mindset that ensures we will remain leaders in originating, developing, financing, constructing, and operating large and complex energy projects.

John Bray: Diversified energy mix of offshore onshore wind solar storage and natural gas positions us well to support the stability of any energy grids as renewable technologies continued to mature.

John Bray: To create value for our shareholders. We pursue only the best opportunities are in front of us with the right people to bring these projects to fruition are.

John Bray: Our strong and talented teams have the knowledge experience and entrepreneurial mindset that ensures we will remain leaders in originating developing financing constructing and operating large and complex energy projects.

John Brace: We have a bright future ahead of us, and we're all excited for all that is to come.

John Bray: We have a bright future ahead of us and we're all excited for all that is to come.

Unknown Executive: This concludes our prepared remarks.

Speaker Change: This concludes our prepared remarks, operator, we'd now be happy to answer questions on the line. Thank you. Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Unknown Executive: Operator, we'd now be happy to answer questions on the line. Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

Speaker Change: Standby, while we compile the Q&A roster.

Rupert Merer: And our first question comes from Rupert Merer of National Bank. Your line is open. Hi, good morning, everyone.

Speaker Change: And our first question comes from Rupert <unk> of National Bank. Your line is open.

Speaker Change: Hi, good morning, everyone.

Rupert Merer: If I could start with the leadership transition, you mentioned you should have some news in the near term. I assume that means you've got a very short list of candidates now.

Speaker Change: Good morning, Robert John If I could start with the leadership transition you mentioned you should have some news in the near term I assume that means you've got a very short list of candidates now can you give us any more color on the process and any changes in thinking you may have on the are the ideal candidate for the job then.

John Brace: Can you give us any more color on the process and any changes and thinking you may have on the ideal candidate for the job and the timing of when you might have someone in the process? Um, really nothing's changed in terms of what we're looking for. Excuse me. As I described in other calls, we're looking for somebody who's, you know, C-suite experienced. Who has a track record of value creation, has an understanding of the kind of business we're in, is a demonstrated leader and strategic thinker. So, we were really looking for the same kind of person we've always been looking for.

Speaker Change: And the timing of when you might have someone in the seat.

Speaker Change:

Speaker Change: Really nothing has changed in terms of what we're looking for.

Speaker Change: Excuse me as I described in other calls we're looking for somebody who is a C suite experience.

Speaker Change: Experience.

Speaker Change: Who has a track record of value creation is.

Speaker Change: Understanding of the kind of business. We're in is a demonstrated leader a strategic thinker.

Speaker Change: So we really.

Speaker Change: Looking for the same kind of person we've always been looking for as you know for our search like this that's a complicated process that takes time.

John Brace: As you know, for a search like this, it's a complicated process. It takes time. Would have been nice if it was faster, but it is what it is.

Speaker Change:

Speaker Change: It'd be nice if it was faster, but it is what it is and in the meantime, I think under Adam.

Rupert Merer: And in the meantime, I think under Adam and whatever I can contribute, I think the company is doing well. In terms of timing, as I mentioned, I'm optimistic that we'll be wrapping up the search in the very near term. Being that if people are involved, I can't give a precise date. It takes its own time. All right, great. Thank you.

Speaker Change: And whatever I can contribute I think the company is doing.

Speaker Change: Doing well.

Speaker Change: In terms of timing as I mentioned I'm optimistic that we'll be wrapping up the search in the very near term.

Speaker Change: Being that if people are involved I can't give a precise dated and all it takes its own takes its own time.

Speaker Change: Alright, great. Thank you and if I could move over to Taiwan. They see that Siemens has produced its first in our cells and in.

John Brace: If I could move over to Taiwan, I see that Siemens has produced its first nacelles in Taiwan. Can you remind us how many of the nacelles for the project will be made there? What shifts are you seeing in your local content? fulfillment in Taiwan. All of the nacelles will be made in Taiwan. Siemens expanded a factory they had there to produce them, and they're already under production, as I mentioned in the prepared remarks. A couple of other directors and myself were in Taiwan about a month ago looking at the facility and looking what they're doing.

Speaker Change: In Taiwan can you remind us how many of them yourselves for the project will be won't be made there.

Speaker Change: And what shifts are you seeing in your local content.

Speaker Change: Our fulfillment and in Taiwan.

Speaker Change: Are all of the cells will be made in Taiwan.

Speaker Change: Payments are expanded a factory they had there to produce them and they're already under production.

Speaker Change: As I mentioned in the prepared remarks.

Speaker Change: Couple of other directors and myself were in Taiwan in about a month ago looking at the facility and looking what they're doing.

John Brace: I'm very, very impressed with what they've achieved and the process they're bringing to manufacturing of the nacelles. There's a whole number of localization commitments the project has made, and all told, we believe we're probably going to exceed overall the localization commitments that were made. So the project's on time and on budget. You've had a couple of setbacks there. I'm wondering, has the geopolitical situation there had any impact on the process so far? Do you see any risk that it could? No. No, I think, frankly, had more impact as it led up to financial flows on the project.

Speaker Change: And very very impressed with David achieved and the process.

Speaker Change: Process, they are bringing to our manufacturing of the nave cells.

Speaker Change: There's a whole number of.

Speaker Change: Localization.

Speaker Change: Commitments that project has made and all told we believe we're probably going to exceed.

Speaker Change: Overall, the localization commitments that were made.

Speaker Change: So the projects on time and on budget you had oh.

Speaker Change: Couple of setbacks here I'm wondering as a geopolitical situation there had any impact on the the process. So far do you see any any risk that it no.

Speaker Change: No I think that frankly had more impact is that what led up to financial close on the project, but once we got into execution that it has had.

Rupert Merer: But once we got into execution, it has had virtually no impact on the project. All right, great. I'll leave it there and get back in the queue. Thank you. Thank you, Rupert.

Speaker Change: Virtually no impact on the on the project.

Speaker Change: Okay, Great I'll leave it there and get back in the queue. Thank you.

Thank you Robert.

Nelson Ng: Thank you. Our next question comes from Nelson Ng of RBC Capital Markets. Your line is open. Great, thanks and good morning everyone. Good morning.

Speaker Change: Thank you.

Our next question comes from Nelson <unk> of RBC capital markets. Your line is now open.

Speaker Change: Great. Thanks, and good morning, everyone.

Speaker Change: Nelson.

Nelson Ng: First question relates to Spain. So, can you just comment on how much of your portfolio in Spain is merchants now? How it'll look. Thank you. Bye. And what's your plan in Spain in terms of recontracting? I know there's. A lot of talk about data.

Speaker Change: Good morning, first question relates to Spain. So can you just comment on how much of your portfolio in Spain as merchants now versus.

Speaker Change: Well looking at that.

Speaker Change: Two years or so.

Speaker Change: And what's your plan in Spain in terms of re contracting our steam merchant because I know there has been.

Speaker Change: A lot of talk about data centers in Spain as well.

Adam Beaumont: Yeah, I can take that one. So Nelson, so 50 megawatts of the portfolio is merchant right now. It came off in January of earlier this year.

Speaker Change: Yeah, I can take that one so no sudden so 50 megawatts of the portfolio is merchant right now it came off in January.

Speaker Change: Earlier this year.

Adam Beaumont: And in terms of exploring future opportunities, we've actually already started to have a number of discussions on that front, looking to recontract. I'm not particularly, I know it's a diverse group of potential offtakes. I'm not sure if there's any data center connectivity there, but a number of options for it.

Speaker Change: And in terms of exploring future opportunities, we've actually already started to have a number of discussions on that front looking to.

Speaker Change: Re contract I'm, not particularly I know, it's a diverse group of potential offtake side I'm not sure. If there's any data center connectivity, there, but a number of options for us.

Adam Beaumont: Adam.

Adam Beaumont: And then the next topic, and maybe this is also for you, Adam, you talked about the overhead cost being a bit higher in Q3 due to management changes. And there is also some, I think, restructuring of operating or corporate functions.

Adam Beaumont: Great. Thanks, Adam.

Speaker Change: The next topic and maybe this is also for you Adam that you talked about the overhead costs being a bit higher in Q3 due to management changes.

Speaker Change: And there is also some I think restructuring of operating our corporate functions. So.

Adam Beaumont: Do you expect any of those higher costs to flow into? No, I think you'll start to see some, probably even looking to 2025, see more of a run rate going forward. And I think it's, we have had a couple of one-time things.

Speaker Change: Do you expect any of those higher costs to flow into Q4.

Speaker Change: No I think youll start to see some.

Speaker Change: It probably even looking into 2025 see more of a run rate going forward and.

Speaker Change: I think it's we have had a couple of one time things. So theres not really we don't for 2024, we don't really have a good <unk>.

Adam Beaumont: So there's not really, we don't, for 2024, we don't really have a good indication overall. We did guide to $75 million in our initial guidance, but we are tracking a little bit higher than that because of the one-time items. But if you remove those, we're still in line with that number.

Speaker Change: Indication overall.

Speaker Change: We did guide to $75 million in our initial guidance, but we are tracking a little bit higher than that because of the one time items, but if you remove those we're still in line with that number.

Nelson Ng: Great.

Adam Beaumont: And then just moving over to the Jurassic Storage Project. So I think John mentioned earlier that the EPC and battery supply. contracts will be signed in the coming months. So is this project a In terms of COD? Yes. Thank you. Yeah, it's 2026. I'll leave it. Thank you, Nelson.

Speaker Change: Okay, Great and then just moving over to the Jurassic storage project. So I think John mentioned earlier that the EPC and better supply.

Speaker Change: Contracts that we signed in the coming months so as this project a.

Speaker Change: Slide 25, our 2026 completion project.

Speaker Change: In terms of C O D.

Speaker Change: Yes, that's right.

Speaker Change: 'twenty 'twenty six.

Speaker Change: Got it okay I'll leave it there thanks.

I can Nelson.

Nicholas Boychuk: Thank you. Our next question comes from Nicholas Boychuk of Cormark Securities. Your line is open. Thanks. Good morning, guys. I'm curious about whether any opportunities exist to improve existing capacity. Toyosha Books gained 8 megawatts or so from a grid capacity increase, and then SolarWorld also has that ongoing heat exchange project, it's going to add 23 megawatts by year-end.

Thank you.

Our next question comes from Nicholas Portschach remarks Securities. Your line is open.

Thanks, Good morning, guys.

Good morning.

Speaker Change: I'm curious whether any opportunities exist to improve existing capacity Toshi books gained eight megawatts yourself from a grid capacity increase and then also how does that ongoing heat exchange projects can add 22 megawatts by year end.

John Brace: Are there other ways that existing assets could see a marginal lift in production, either from a few incremental dollars spent or some other form of repositioning? I don't think beyond those, there's not a lot of scope because it would require the installation of new prime movers in Thorold. We're just upgrading an existing turbine, so it makes it a little easier to do that. But certainly we're focused on trying to squeeze as much out of what we have as we possibly can, both in terms of availability. and operating at peak performance.

Speaker Change: Are there other ways at existing assets could see a margin lift in production either from a few incremental dollar spent or some other form of repositioning.

Speaker Change: I don't think beyond those theres not a lot of scope because it would require the.

Speaker Change: Installation of a new prime movers.

Speaker Change: And thorold, we're just upgrading an existing turbine so it makes it a little easier.

Speaker Change: To do that.

Speaker Change: But certainly we're focused on trying to squeeze as much out of what we have as we possibly can both in terms of availability.

Speaker Change: And operating at peak performance.

John Brace: Same line of thought for 2025 asset performance and availability. Is there anything on the horizon from a maintenance standpoint or asset work on a grid that would impact availability and potential production? Or would 2025 kind of look like 2024 all else equal? Yeah, I don't have the line of sight directly to the specifics. I know that 2024 did have a number of unplanned and planned downtime, plus the, because the wind and for the first half of the year, the wind and the solar was performing, there was more instances of negative pricing. But I think that's the, that's all I can think of right now.

Speaker Change: Okay.

Speaker Change: Same line of thought for 2025 asset performance and availability is there anything on the horizon from a maintenance standpoint or.

Speaker Change: Work on a grid that would impact availability and potential production or 2025 kind of looked like 24, all else equal.

Speaker Change: Yeah, I don't have the line of sight directly to 'twenty does the specifics I know that 2024 did have a number of unplanned and planned downtime plus the <unk>.

Speaker Change: Because the wind and for the first half of the year the wind and the solar was performing there was more instances of negative pricing.

Speaker Change: But I think that's the that's all I can think of right now.

John Brace: I'm curious if you guys can expand a little bit on how you're thinking about capital allocation from a return perspective. Obviously, now that gas is a little bit more in vogue and valuations have gone up, can you walk us through a little bit how you're thinking about minimum returns required to deploy capital in those areas now, whether it's from acquiring assets or participating in the Ontario LT2 program? What would you need to get out of a gas asset now to now get into it? They are a Our return targets are in the teens. For everything that we do, pardon me.

Speaker Change: Okay. Thanks, and then last for me on the gas opportunity I'm curious if you guys can kind of expand a little bit on how youre thinking about capital allocation from a return perspective.

Speaker Change: Obviously now that gas is a little bit more on Gorgon valuations have gone up can you kind of walk us through a little bit how you're thinking about minimum returns required to deploy capital in those areas now whether it's from existing or acquiring assets or participating in the Ontario LTE to program, what would you need to get out of a gas asset.

Speaker Change: Now to now get into it.

Speaker Change: The R R.

Speaker Change: Our return targets are in the teens.

Speaker Change: For everything that we do.

Pardon me.

John Brace: We do have different expectations depending on geography and type of contract and technology and all of that kind of thing. But you can think of the teams as the overall target for the company. Okay, understood.

Speaker Change: We do have different expectations depending on.

Speaker Change: <unk> fee and type of contract and technology and all of that kind of thing, but you can think of the teens is the overall target for the company.

Unknown Executive: Thank you.

John Bray: Okay understood. Thanks, John.

Speaker Change: Thank you.

Yes.

Mark Jarvi: And our next question comes from Mark Jarvi of CIBC. Your line is open. Thanks, good morning everyone. John, you mentioned opportunity maybe to do more in Poland. I assume that would be probably through a partnership with PKN. Any update on discussions there or sense of when PKN might pick their partner for the next sites they'd look to develop? Sure, I mean, we would love to do another project with Orlin. There's no doubt about it. I think we're functioning well as a team together on Baltic Power. And we'd just love to roll into the next project with them.

And our next question comes from Mark Jarvi of CIBC. Your line is now open.

Mark Jarvi: Thanks, Good morning, Ron.

John Bray: John you mentioned opportunity maybe to do more in Poland.

Speaker Change: I assume that would be part of the issue would be trip or a partnership with PK and any update on discussions there a sense of when pecan, Mike pick their partner for the next I'd say look to develop.

Speaker Change: Sure I mean, we would love to do another project with Orland, There's no doubt about it I think we are functioning well as a team together on Baltic power are.

Speaker Change: And we'd just love to roll into the next project with them being who they are among other things theyre going to have to go through some sort of process to pick their partner for the other other sites they have.

John Brace: Being who they are, among other things, they're going to have to go through some sort of process to pick their partner for the other sites they have. We're hopeful we'll be the winner of that process, but that's going to be something we're going to find out over the next year or so. Is that process underway? Is that something you have clarity on in 2025 or still forming at this point?

Speaker Change: Sure.

Speaker Change: Oh fall will be the winner of that process, but.

Speaker Change: That's going to be something we're going to find out over the next year or so.

Speaker Change: Is that process underway and is that something you have clarity on in 2025 or <unk>.

John Brace: No, they're still forming their plans for that. Okay.

Speaker Change: Still for me to know or they they.

Speaker Change: Theres still forming their plans for that.

John Brace: There's been some more sort of building maybe momentum, or momentum, but prospects for Atlanta, Canada to move forward offshore wind. You guys have obviously, I think, been part of the consultation process. Are you still actively involved? And do you have a sense of how that would roll out? Would these be sort of lease auctions for the site? Or how interested are you? And how do you see that process forming right now? We're involved in it. I believe the legislation has been passed that deals with the seabed, Bill C-49, excuse me, but The route to market for electricity is still a little opaque and so we're proceeding cautiously on the East Coast, I'll put it that way.

Speaker Change: Okay.

Speaker Change: There's been some more sort of building momentum.

Speaker Change: Momentum, but.

Speaker Change: Aspects for Atlantic, Canada move for the offshore wind.

Speaker Change: You guys have obviously been part of the consultation process are you still actively involved in do you have a sense of how that would roll out would these be sort of leaks off lease auctions for the site or.

Speaker Change: How interested are you and how do you see that process for me right now.

Speaker Change: Ah we're involved in it I believe the legislation has been passed that deals with the seabed <unk>.

Speaker Change: Bill C 49.

Speaker Change: Excuse me, but.

Speaker Change: The route to market for electricity is still a little pegged.

Speaker Change: And so where we are.

Speaker Change: We're proceeding cautiously on the east coast I'll put it that way.

John Brace: Would you be able to secure a site at a low cost or is this something you think where costs could be sort of higher, not quite as what we see in the US or the UK, but some sort of higher price to get the site secured? Yeah, I mean, I would think we want to see some more clarity and understand where the revenue timing would come before we kind of go through that. But we are going through the early stage work, as John said, at this point.

Speaker Change: Would you be able to secure a site at a lower cost or is this something you think where cost could be sort of higher not quite as what we see in the U S or the U K, but some sort of higher price to get the <unk>.

Speaker Change: Site secured.

Speaker Change: Yes, I mean, I would think we want to see some more clarity and understand where the revenue timing would come before we kind of go through that but we are going through the early stage work as John said at this point.

John Brace: OK, and then just coming back to Ontario, any thoughts on blend and extend contracts for existing renewables? I think there was a court case recently that said Repowering might be able to stand for some of the contracts that are out there already. Any view in terms of leveraging the existing wind and solar assets in the province? Yeah, we noticed the court case and we're reviewing our different options on that side. Do you think you're in a position to incorporate anything like that into bids for LT2? Nothing that's ready to be made public at this point.

Speaker Change: And then just coming back to Ontario, and any thoughts on blend and extend contracts for existing renewable I think there was a.

Speaker Change: A court case recently that said repower and might be able to stand for some of the contracts that are out there already any view in terms of leveraging the existing wind and solar assets in the province.

Speaker Change: Yes, we noticed the court case, and we're reviewing our different options on that side.

Speaker Change: Do you think youre in a position to incorporate any like that into bids for healthy too.

Nothing that's ready and.

Speaker Change: <unk> be made public at this point.

Mark Jarvi: Okay, thanks for your time today.

Speaker Change: Okay. Thanks for your time today.

Unknown Executive: Thank you, Mark. Thank you.

Speaker Change: Thank you Martin.

Speaker Change: Thank you.

Jessica Hoyle: Our next question comes from Jessica Hoyle of Scotiabank. Your line is open. Morning, thanks for taking my question.

Speaker Change: Our next question comes from Jessica Hoyle of Scotia Bank. Your line is open.

Speaker Change: Good morning, Thanks for taking my question.

John Brace: I suggest to start Good morning. So just to start, so Taiwan and the EU recently settled the issues related to local content. So I just want to get your perspective. How does this change how you look at your future projects in the area or even the existing supply chain? If I understand what you're referring to. There has been pressure on Taiwan to eliminate local content requirements, but it would be applicable to future procurements within Taiwan. basically operating in a way to Respond to and achieve the localization targets we committed to for the high lawn project we're building right now.

Speaker Change: Good morning.

Speaker Change: Good morning.

Speaker Change: Let's start with Taiwan, and CEO recently settled the issues related to local content.

Speaker Change: Wanted to get your perspective, how does it change how you look at your future project.

Speaker Change: Or even.

Speaker Change: Hi, Tom.

Speaker Change: And if I understand which taro referring too.

Speaker Change: There has been pressure on Taiwan to eliminate local content requirement.

Speaker Change: But it would be applicable to future procurements within Taiwan.

Speaker Change: There are.

Speaker Change: Basically operating in a way too.

Speaker Change: Sure.

Respond to and achieve the localization targets, we committed to for the high long project or a building right now.

John Brace: In the meantime, sort of call it the interim, Taiwan had had 2 procurement rounds for additional offshore wind, which were very poorly received because of the localization requirements. We, in fact, didn't participate in them at all. In the future, it looks like the localization requirements are going to disappear, and which makes Taiwan a more attractive place, but we're going to have to see the details when they come. Thanks for that.

In the meantime, sort of call. It the interim Taiwan had had two procurement rounds.

Speaker Change: For our additional offshore wind, which were very poorly received a.

Speaker Change: Because of the localization content requirements, we in fact didn't participate in them at all.

Speaker Change: In the future.

Speaker Change: It looks like the localization requirements are going to disappear in it which makes Taiwan, a more attractive place, but we're going to have to see the details when the egg Chung.

John Brace: And then you talked a little bit about returns in the mid-teens, but just given increases in demand in Ontario and other areas, can you just provide a little bit more colour on how you think about opportunities in the natural gas segment, including further expansions of existing facilities or even new build opportunities? I think if you had noticed what we were saying a few years ago, pardon me. We would have been saying that we were not interested in doing any more natural gas facilities.

Speaker Change: Thanks for that and then you talked a little bit about returns in the mid teens, but just given increases in demand in Ontario, and other areas can you just provide a little bit more color on how you think about opportunities in the natural gas segment, including further expansion.

<unk> or even new build opportunities.

Speaker Change: I think if if you had a notice way, we're saying a few years ago.

Pardon me.

Speaker Change: We would have been.

Speaker Change: <unk> been saying that we were not interested in doing any more natural gas facilities.

John Brace: The world has changed. I think everyone has woken up to the fact that demand growth and electricity is tremendous and that the only way we're going to achieve meeting demand growth and reliability and stability within the grid is to incorporate more natural gas. The way we look at natural gas, we want to do it in a way that is environmentally sound. We will be looking at not only natural gas facilities in themselves, but can they connect, for example, to carbon capture and storage? Could they lead into a future into renewable fuels or the like? So we want to be environmentally wise about what we do, but we think there's a huge opportunity in natural gas.

Speaker Change: The World has changed I think everyone has woken up to the fact that demand growth in the electricity is tremendous.

Speaker Change: And that the only way, we're going to achieve meeting demand growth and reliability and stability within the grid is to incorporate more natural gas.

Speaker Change: We look at natural gas.

Speaker Change: Want to do it in a way that is environmentally sound.

Speaker Change: We will be looking at.

Speaker Change: Not only natural gas facilities in themselves, but can they connect for example to carbon capture and storage could they lead into the future into a renewable fuels or or or the like.

Speaker Change: So we want to be environmentally.

Speaker Change: Why is about what we do but we think there's a huge opportunity and natural gas.

John Brace: And we are pursuing it. In terms of our existing facilities, yeah, there are some expansion possibilities, and there's some ways of reconfiguring those facilities to perhaps deal with the environmental things that I talked about. So we're looking at a good opportunity set for us, albeit mostly focused in Canada, the way we're working right now.

Speaker Change: And we are pursuing it in terms of our existing facilities. Yeah. There is some expansion possibilities.

Speaker Change: And there's some ways of re configuring those facilities to perhaps deal with environmental things that I talked about so we're looking at a good opportunity set for us, albeit mostly focused in Canada. The way, we're working right now.

John Brace: Thank you. I should also add, you know, the oft talked about data center load fits very closely with natural gas. So that's part of what we're pursuing.

Speaker Change: Thank you.

Speaker Change: I should also add.

Speaker Change: The oft talked about data center load.

Speaker Change: Fits very closely with natural gas so that's part of what we're pursuing.

Unknown Executive: Thank you.

Unknown Executive: I'm showing no further questions at this time.

Speaker Change: Thank you I'm showing no further questions at this time I would like to turn it back to John Gray for closing remarks.

John Brace: I'd like to turn it back to John Brace for closing remarks. Well, thank you, everyone, for joining us today and your questions. We will hold our next earnings call following the release of our fourth quarter results in February. In the meantime, we thank you for your continued support.

John Gray: Well, thank you everyone for joining us today.

John Gray: And your questions, we will hold our next earnings call. Following the release of our fourth quarter results in February in the meantime, with thank you for your continued support.

Unknown Executive: This concludes today's conference call. Thank you for participating.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Unknown Executive: You may now disconnect.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yeah.