GE Energy Financial Services has agreed on the indicative terms of an equity investment in a 77 MW wind farm that Finavera Wind Energy Inc., formerly Finavera Renewables Inc., plans to build in British Columbia's Peace River region.
Finavera and the GE unit are working to convert the indicative terms into a binding agreement under which GE Energy Financial Services – subject to satisfaction of conditions precedent – would provide cash equity for the Wildmare wind energy project.
Finavera would provide the non-cash equity – including the energy contract, permits and development work to date – and serve as managing partner. Based on current financial information, it is estimated that Finavera would retain a 30% economic interest.
The two companies would jointly arrange debt financing and retain a third-party engineering firm to oversee construction of the project. Execution of the equity investment agreement is subject to customary corporate and regulatory approvals, completion of ongoing due diligence, satisfactory documentation and approval by each company's board of directors. Additional financial details were not disclosed. Further details will be released upon execution of final documentation.
The project, with an estimated capital cost of C$200 million, is located in an area with guaranteed access to transmission. The project has a 25-year power purchase agreement (PPA) with BC Hydro. It would support British Columbia's Energy Plan, which includes a commitment to electricity self-sufficiency by 2016 and zero net emissions from all new power generation.
Finavera and GE Energy Financial Services also are continuing to work closely to advance Finavera's three other British Columbia wind projects, including the 47 MW Tumbler Ridge project, 117 MW Meikle project and 60 MW Bullmoose project. Each of the three projects also has a 25-year PPA with BC Hydro.
SOURCE: Finavera Wind Energy Inc.