An agreement between Sea Breeze Power Corp. and International Power Canada Inc. will result in the development of the first phase of the Knob Hill Wind Farm.
Under the terms of the transaction agreement, International Power Canada will become the majority owner of the first phase of the Knob Hill Wind Farm. Specific terms of the transaction agreement remain confidential at this time. Additional information will be released at a later date.
The Knob Hill Wind Farm is located 35 km northwest of Port Hardy on northern Vancouver Island, within the traditional territories of the Quatsino, Tlatlasikwala and Kwakiutl First Nations. Phase I of the project is expected to generate 99 MW.
The project was offered a power purchase agreement (PPA) earlier this year by British Columbia Hydro and Power Authority. Construction on Phase I of the Knob Hill Wind Farm is expected to begin in 2011, with a target date for delivery of electric power in late 2012.
The agreement with International Power Canada provides an option for Sea Breeze and the three First Nations to purchase equity positions in the project. Sea Breeze would also receive a developer's fee and an ongoing revenue royalty for the duration of the PPA. An impact-benefits agreement with the three First Nations is progressing through negotiation.
SOURCE: Sea Breeze Power Corp.
