Toronto-based Schneider Power Inc. has entered into a nonbinding memorandum of understanding (MOU) for an estimated C$22 million in project equity financing with Energy Farming Ontario LLC (EFI), a subsidiary of German wind project developer Energy Farming International AG, to construct and commission 36.5 MW of Ontario wind farms.
Under the terms of the deal, Schneider Power and EFI propose to establish a joint venture to construct, commission and operate the Providence Bay Expansion Project, the Arthur Wind Farm, the Innisfil Wind Farm and the Trout Creek Wind Farm. The EFI MOU anticipates that Schneider Power will transfer ownership of these projects to a joint-venture vehicle in exchange for a significant retained interest in the long-term cash flows of the projects and a cash fee.
Schneider will also provide ongoing operations and management services to the jointly owned company. EFI would acquire a majority equity interest in the joint venture by contributing sufficient capital to construct these projects. The total capital cost to realize the projects is expected to be C$86 million. The balance of the project costs will be met with debt financing.
SOURCE: Schneider Power Inc.