Finavera discusses the financing of 300mw of wind projects in British Columbia


Finavera Renewables Inc. has announced that it has entered into discussions with a potential corporate investor - and has received a non-binding indicative financing proposal from that investor - in connection with four wind projects currently being developed by Finavera in the Peace Region of British Columbia, Canada.

The proposal contemplates that the investor would invest 100% of the equity requirements for each of the four projects awarded an electricity purchase agreement by BC Hydro, pursuant to the BC Hydro Clean Power Call.

Finavera Renewables CEO Jason Bak said - “This proposal contains financing solutions for these 300 megawatts of wind projects in British Columbia and would allow us to move forward with strong bids to secure power purchase agreements. An equity solution provides one of the greatest milestones towards the development of wind farms. It facilitates the arrangement of senior project debt - which, together with equity, would represent a $1 billion financing solution for the expected cost of constructing and commissioning these four wind farms.

"For investors, this provides a project financing solution that does not dilute the company’s capital structure and significantly enhances the value of the project development work completed by Finavera Renewables.”

The financing proposal does not represent an offer or commitment to provide any debt or equity financing and is subject to completion of satisfactory due diligence, credit approval, definitive agreements and other customary conditions.

The four wind projects in the Peace Region have several fundamental attributes that will contribute to their development into strong operating wind farms - high wind speeds resulting in high energy yields, close proximity to transmission lines and ease of accessibility.

The company has conducted detailed turbine layout assessments for the projects and discussions are underway with major turbine manufacturers for the supply of wind turbines. The company has involved the project stakeholders, local groups and communities since these projects were initiated more than three years ago.

The Clean Power Call Request for Proposals (RFP) - released by BC Hydro on June 11, 2008 - targets up to 5,000 Gigawatt hours of clean, renewable energy per year from larger-scale projects using proven technologies. According to the current B.C Hydro Clean Power Call schedule, proposals will be due November 25, 2008 and electricity purchase agreements are expected to be awarded between April and June 2009.

The Clean Power Call aligns with the greater British Columbia Energy Plan, which calls for 90 per cent of electricity in the province to be generated from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.

For more information on the Clean Power Call - Click Here