The portfolio has a total nameplate capacity of 310MW across sites at Iroquois Falls, Kingston, Kapuskasing and North Bay.
The portfolio includes facilities in Iroquois Falls, Kingston, Kapuskasing, and North Bay, with a total nameplate capacity of 310MW. The agreements provide a weighted average capacity payment of C$530 ($388) per MW-business day for the first year, with adjustments for inflation over time. This structure ensures stable cash flows for Hut 8’s operations.
By replacing short-term seasonal contracts with these fixed five-year agreements, Hut 8 achieves greater financial stability and reduced earnings volatility, benefiting investors and stakeholders. “Securing these contracts is a testament to the commercial and regulatory fluency of our power-native team,” said Hut 8 CEO Asher Genoot. “It reflects our proactive approach to portfolio management and our focus on identifying value-accretive opportunities to maximise returns on our power assets.”
The contracts position Hut 8 to capitalize on additional energy sales in Ontario’s growing market. IESO forecasts indicate that electricity demand in the region could increase by up to 75% by 2050, with potential capacity shortages of 5.8 GW by 2030. These conditions are expected to heighten reliance on Hut 8’s dispatchable assets.
“This milestone for Far North is affirmation of the business and our relationship with Hut 8,” said Joshua Stevens, Managing Director of Macquarie Group’s Commodities and Global Markets business. “These contracts position the Far North power plants in Ontario for long-term relevance in a capacity-constrained power market, demonstrating the value we strive to bring as a capital provider.”
The agreements enhance Hut 8’s ability to meet Ontario’s rising energy needs while maintaining operational efficiency. The partnership with Macquarie Group strengthens the strategic positioning of Far North Power’s assets, supporting long-term growth in a dynamic energy market.
