VANCOUVER, CANADA, March 6 /CNW/ - Finavera Renewables Inc. (the
"Company") (TSX VENTURE:FVR) is pleased to announce it has signed an agreement
to purchase the 150MW Three Hills Wind Power Project in Alberta, Canada from a
senior oil and gas producer (the "Vendor") for a total consideration of $3.35
million CAD. The project consists of two 75MW phases for a planned installed
capacity of 150MW of wind power on over 16,000 acres of land. Closing of the
agreement, scheduled for March 30, 2007, is subject to the consent of the
Alberta Electrical System Operator ("AESO").
The first phase of the project, named Ghost Pine, is 75MW and has
received a grid connection offer from the AESO under Alberta's self-imposed
900MW wind energy cap; the project is fifth on the list of firm capacity
offered by AESO. Ghost Pine is at an advanced stage with construction planned
to start in 2008 and commercial operations envisaged to commence in 2009.
The project areas are located in high efficiency wind resource area in
central Alberta approximately 120km northeast of Calgary. The projects will be
developed in order to be eligible for Greenhouse Gas (GHG) credits and the
Canadian Wind Power Production Incentive, or equivalent. Both of these
measures will contribute to the upside and profitability of the project.
Finavera Renewables COO Bertan Atalay said, "A payment of $1.8 million
CAD has been made towards the grid interconnection for Ghost Pine by the
Vendor, the wind resource is strong, and there is certainty in place to sell
electricity into the Alberta pool. These projects are Finavera Renewables'
first step towards expanding its wind power development operations outside of
BC and Ireland, with near term revenue generation potential."
Jason Bak, Finavera Renewables CEO commented, "This wind project
represents a significant development within our wind portfolio. The project is
close to construction and will begin to provide power for approximately 45,000
Canadian homes as early as 2009. This acquisition reflects our strategy to
grow a near term cash generative pipeline of projects to advance our overall
objective to develop our AquaBuOY wave energy technology and renewable energy
projects in Canada, Europe and South Africa."
Three Hills Phase 1: 75MW Ghost Pine Wind Power Project
Six meteorological towers have been collecting wind data at various
stages of the project. The longest series of wind data has been collected for
more than two years and an extensive wind resource assessment has been
completed for the project site. The wind regime has been classified as Class
II, with a 31.3% capacity factor giving a P50 net yield estimate of 208,000MWh
Land and Permitting
Land lease options are in place for the project site which comprises
farmland. Wild life data collection has been ongoing since the beginning of
the year and will continue for at least a further 12 months. It is envisaged
that applications will be made to the Energy Utilities Board and to
appropriate Alberta authorities, including Alberta Environment, in the next
Interconnection to the grid has been secured through a payment to the
AESO, with a current in-service date under the construction commitment
agreement of March 2008. Currently in Alberta there is approximately 600MW of
wind energy online. The AESO has implemented a moratorium on further grid
connections for wind projects, with only an additional 300MW being allowed
into the queue to proceed to construction. The project has a secured place in
the top 300MW grouping.
The project will sell power to the Alberta power pool. On March 5, 2007
day-ahead pool prices were approximately $46/MWh (median) and $59/MWh
(average). The pool power prices are predicted to increase in the near future.
Chase Energy Canada Limited estimates the pool prices for calendar years 2009
and 2011 to be $78/MWh and $71MW/h, respectively. Additional value may be
realized from the sale of environmental attributes and other federal and
provincial subsidy mechanisms, as mentioned above.
Three Hills Phase 2: 75MW Lone Pine Wind Power Project
Wind resource measurements for Phase 2 are continuing with more than 12
months of onsite data collected. Currently, the site is estimated to yield
217,000MWh/year using a P50 exceedance probability, with an associated
estimated net capacity factor of 32.7%. Land lease options are in place for
the project site which comprises farmland. Environmental data collection and
analysis is ongoing and concurrent with the first phase of the project.
About Finavera Renewables Inc. (www.finavera.com)
Finavera Renewables Inc. is dedicated to the development of renewable
energy resources and technologies. The Company's objective is to become a
major renewable and green energy producer by developing and operating its
assets in the wind and wave energy sectors. Finavera Renewables is developing
wind energy projects in Canada and Ireland. In Ireland, two wind projects are
being developed with a potential capacity of 175MW and in Canada, 18 potential
wind projects are being developed with a potential capacity exceeding 1500MW.
Data collection and environmental studies have commenced at a number of sites
in both countries. The Company is also developing the patented 'AquaBuOY' wave
energy converter, a device that is based on proven and sustainable buoy
technology. The Company is developing wave energy projects for AquaBuOY use in
the United States, Portugal, South Africa and Canada.
On behalf of the Board of Directors,
CEO, Finavera Renewables Inc.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
Statements in this news release, other than purely historical information,
including statements relating to the Company's future plans and objectives or
expected results, constitute Forward-looking statements. Such statements are
based on numerous assumptions and are subject to all the risks and
uncertainties inherent in the Company's business, including risks related to
exploration and development. Consequently, actual results may vary materially
from those described in the forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.
For further information:
For further information: K Capital Source for Finavera Renewables
Jonathan Neilan Phone 353 1 631 5520 Fax 353 1 631 5899