Finavera Renewables Inc. (TSX-V: FVR), with the support of GE (NYSE: GE) is proposing to develop 295-megawatts (MW) of wind power in British Columbia, in response to a request for proposals (RFP) from utility BC Hydro.
Finavera Renewables signed a Memorandum of Understanding (MOU) with GE Energy Financial Services for financing for four wind projects in the Peace region of northeast British Columbia.
The company also signed a separate MOU with GE for the firm pricing and supply of GE wind turbines for one of the four wind farms–the 45-megawatt (MW) Tumbler Ridge Wind Project, which is planned to be constructed in 2011.
Under the terms of the MOU, Finavera Renewables commits to build the Tumbler Ridge Wind Energy Project exclusively with GE wind turbine equipment. The Company and GE would finalize a turbine supply agreement (TSA) shortly after the award of a power purchase agreement from BC Hydro, should the proposal for the Tumbler Ridge Wind Energy Project be accepted.
Information on turbine supply for the Company’s three other projects to be bid into the Clean Power Call will be released after the bids are submitted.
The names of the other three proposed wind farms are Bullmoose (60 MW), Meikle (118 MW) and Wildmare (72 MW). Should BC Hydro award an Energy Purchase Agreement to Finavera Renewables, GE Energy Financial Services would have the exclusive right to fund and/or arrange equity and debt financing for these projects. The combined capital cost of the four projects is estimated to be $800 million.
"With the support of GE Energy Financial Services, we are submitting four very strong bids into the BC Hydro Clean Power Call for Proposals," said Finavera Renewables’ CEO Jason Bak. "This marks an exciting development in the growth of Finavera Renewables as we begin to realize the value of our pipeline of wind projects."
Concerning the wind turbine agreement, Bak said, "Signing this MOU allows us to secure turbines and firm pricing from a top tier turbine manufacturer and will enhance our bid in the upcoming BC Hydro Clean Power Call."
Finavera Renewables Inc. is dedicated to the development of renewable energy technologies. The Company’s objective is to become a major renewable and green energy producer by developing and operating its assets in the wind sector. Finavera Renewables is developing wind energy projects in Canada and Ireland. In Canada, a two stage 150 MW project is being developed in Alberta. In Ireland, two pre-construction wind projects are under development with a potential capacity of 175MW. Data collection and environmental studies have been continuing at a number of sites in both countries.
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