Vancouver, British Columbia-based Finavera Renewables Inc. has completed a purchase and sale agreement with Ghost Pine Wind Farm, a wholly owned subsidiary of a major U.S. utility, for the sale of its 75 MW Ghost Pine Wind Project in Alberta, for total proceeds of C$4.5 million.
The company will retain its 50% ownership of the nearby 75 MW Lone Pine project.
‘This transaction puts our company in a much stronger financial position during these difficult market conditions and allows us to continue developing a strong pipeline of projects in British Columbia, Ireland and Alberta,’ says Jason Bak, CEO of Finavera Renewables.
The decision to sell the Ghost Pine project is part of the company's strategic plan to focus on developing high return, core wind power projects in order to maximize value and balance risks for shareholders.
The Ghost Pine project faced deteriorating credit markets and non-firm power pricing, which reinforced the company's decision to monetize this asset. The immediate primary focus remains the continued development of its wind projects in British Columbia and Ireland through partnerships and/or joint venture arrangements.
Finavera plans to execute on its wind structures and bring these assets to commercial operation. In the longer term, the company will continue to assemble a diversified mix of revenue-producing, renewable energy assets.
Proceeds from this transaction will be used primarily for working capital and the continued development of 293 MW of wind projects entered into the BC Hydro Clean Power Call in British Columbia and the development of the 105 MW Cloosh Valley wind project in Ireland.
SOURCE: Finavera Renewables Inc.