Greenbriar Capital Corp. Executes Binding Agreement for Land Site on 100 MW Solar Project in Puerto Rico
TSX.V Symbol: "GRB"
Issued and Outstanding: 11,312,000
NEWPORT BEACH, CA, Oct. 1, 2013 /CNW/ - Greenbriar Capital Corp. (TSXV: GRB) (OTC: GEBFF) is pleased to announce the signing of a Definitive Agreement by its US limited liability company Greenbriar Capital (US) LLC, to lease a 775 acre site for the construction and operation of a 100 MW solar photovoltaic electric generating facility located in Puerto Rico. The lease agreement provides for a term of 25 years and may be extended for up to four (4) additional consecutive periods of five (5) years each, at Greenbriar's option.
The selection of the site follows an extensive site selection process and represents the highest quality site available in Puerto Rico. The site is located in a region associated with low rainfall and cloud cover, exceptional levels of solar irradiance, excellent topography and drainage, low environmental impact and in proximity to 115 kV transmission lines and substation.
In addition, Greenbriar has entered into a service agreement with a leading environmental consulting firm based in Puerto Rico for completing environmental site studies, completing the environmental assessment and for filing a site location authorization with the jurisdictional permitting authorities for review and approval of the construction and operation of the 100 MW project.
The Project is being developed by AG Solar One, a subsidiary of Greenbriar, and by AG Solar One's Puerto Rican subsidiary, PBJL Energy Corporation ("PBJL") under a 100 MW Master Power Purchase and Operating Agreement ("Master PPOA") with the Puerto Rico Electric Power Authority ("PREPA").
Under the Master PPOA, Greenbriar will receive $150 per MWh for electricity production if the facility is in operation by the end of 2014 and $140 per MWh if commercial operation occurs after 2014. The sale terms additionally provide for the sale price to escalate at 2% annually. The term of the PPOA will be for 25 years and may be extended by mutual agreement for up to two (2) consecutive additional five (5) year terms. In addition, under terms of the Master PPOA, Greenbriar will own all Renewable Energy Credits or REC's produced by the facility and which can be sold separately to PREPA or into the US National market where qualified. Currently the average price contracted for the REC's in Puerto Rico is an additional $35 per MWh. Anticipated production is 280,000 MWh per year.
Greenbriar will also retain the 30% US Investment Tax Credit, which basically provides 30% of the entire capital costs of the Project. Estimated capital costs are $270 Million.
Greenbriar has been active in Puerto Rico since 2008 and Jeffery Ciachurski, its Chief Executive Officer, states: "Greenbriar is extremely pleased to have located and negotiated such an exceptional site in Puerto Rico. This is a major milestone. I commend our local team on the tireless hours and extensive site selection screening process that has lead to the culmination of our signing of the Agreement. Our Environmental Consultant has already commenced on-site environmental studies in order to prepare and file our permitting documents. Once we have filed our permitting documentation and have received positive feedback, we will be requesting a site specific PPOA and authorization to proceed from PREPA. Provided there are no delays in receiving authorization to proceed from PREPA, together with our Professional Engineering Group performing the project and interconnection design to meet PREPA's technical requirements, we appear to be on track to proceed with construction for completion in 2014."
About Greenbriar Capital Corp.
Greenbriar Capital Corp is a leading developer of renewable energy and sustainable real estate projects. With long-term, high impact, contracted sales agreements in key project locations and led by a successful industry recognized operating and development team, Greenbriar targets deep value assets directed at accretive shareholder value.
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski
President, Chief Executive Officer and Director
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Certain statements in this press release constitute "forward-looking statements" under applicable securities laws, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "intends", "projects", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Such factors include, but are not limited to the state of the Company's business activities and various factors discussed in the Company's annual report filed with securities regulators in Canada. Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.
SOURCE Greenbriar Capital Corp.For further information:
Jeff Ciachurski, CEO
Greenbriar Capital Corp.