Sea Breeze Power Corp. has closed an asset purchase transaction with IPR-GDF SUEZ North America for the first phase of the 99 MW Knob Hill wind project in British Columbia.
Total transaction payments expected to be received by Sea Breeze (as of the date of commercial operation), will be approximately C$12 million, which includes milestone payments of C$1.8 million.
Additional milestone payments will be paid as the project moves through construction and into commercial production. IPR-GDF SUEZ will provide 100% of the equity funding for the project.
The project has been renamed the Cape Scott wind farm as an element of the transaction. Construction is expected to begin this summer, following the completion of amendments to the existing environmental approvals for the wind farm. The amendments relate to the project's transmission line to Port Hardy, British Columbia.
The project, which has a 20-year power purchase agreement with BC Hydro, represents the first of two phases for development of the Cape Scott wind farm site. IPR-GDF SUEZ holds a right of first offer to acquire the balance of the permit land available for the second phase of the project.