VANCOUVER, CANADA, August 1 /CNW/ - Finavera Renewables Inc. ('Finavera
Renewables' or the 'Company') (TSX VENTURE:FVR) has signed an exclusive
Memorandum of Understanding (MOU) to acquire a 20 megawatt wind farm in
Germany (the "Project'), subject to completion of a final purchase and sale
agreement and due diligence. The Project is currently under construction and
is expected to reach commercial operation in December 2007.
The Company has retained the legal services of Watson Farley Williams'
Hamburg office in order to carry out detailed due diligence. Following this
work, the Company expects to be in a position to proceed with the transaction
and release the final details.
Finavera Renewables CEO Jason Bak said, "This opportunity is an important
milestone in the development of our Company as we grow from a project
developer to an owner-operator and asset manager. This Project is already
under construction and is anticipated to generate clean, green electricity by
the end of this year. Detailed due diligence thus far has made us aware of
several factors that make this project very attractive: it has a two tranche
debt financing package offered by a major German lender, there is a guaranteed
power sales agreement until 2027, and it provides the Company with the
opportunity for near-term revenue."
Key project highlights include:
-- A Feed-in Tariff power sales agreement providing long term
predictable cash flow as the German Erneuerbare-Energien-Gesetz ("EEG")
guarantees a sales price of EUR 0.0819 cents per kWh fed into the grid until
-- The Project has an estimated electricity yield of 38,550,000 kWh at
-- The wind farm is offered as a turn-key project with an envisaged
commercial operation date of December 2007.
-- Senior debt financing is offered by a major German lender.
-- The Project will utilize ten proven technology, 2MW turbines, under
warranty by the manufacturer and subject to a 12 year maintenance agreement
with the same German turbine manufacturer.
-- The Project Vendor is a leading developer in the German wind energy
sector and is responsible for the installation and operation of more than
350MW of wind projects.
Mr. Bak concluded, "This acquisition strategy represents the next stage
in the corporate development of our Company. Combined with our significant
portfolio of projects under development, this proposed wind farm acquisition
will add to our value by diversifying our geographic and regulatory risk,
providing downside protection through near-term revenue, and will advance the
Company in becoming an operator of renewable power assets. Generated profits
can then be reinvested in achieving key wind project milestones and the
development of our AquaBuOY wave energy technology. This strategy will drive
our Company along the path to becoming a major force in the renewable energy
While Finavera Renewables has already undertaken substantial due
diligence on this Project, completion of a purchase and sale agreement is not
a certainty and is subject to further negotiations and analysis.
On behalf of the Board of Directors,
Jason Bak, CEO
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 Inc. is
developing the licensed and patented 'AquaBuOY' wave energy technology, 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. The Company is also developing other wind
energy projects in Canada and Ireland. In Canada, a two stage 150 MW project
is being developed in Alberta. Construction on this advance stage project is
estimated to begin in 2008 and provides for near term revenue. In British
Columbia, four projects totaling 366 MW have been entered into the provincial
Environmental Assessment process, and several other sites are being developed.
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.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any 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, objectives or expected results,
constitute Forward-looking statements. Such statements represent management's
conclusion based on numerous assumptions and are subject to all the risks and
uncertainties inherent in the Company's business, including development risks.
Further information concerning such risks is set forth in the Company's formal
disclosure documents filed on SEDAR, including its MD&A. Consequently, actual
results may vary materially from those described in the Forward-looking
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of, this release.
For further information:
For further information: Finavera Renewables Inc. 604-288-9051
firstname.lastname@example.org or Media contact Myke Clark, VP Policy & Public Relations
email@example.com or Weber Shandwick Jai Ferguson