Dec 15 2009
GE Energy Financial Services, a unit of GE, and Plutonic Power Corporation have jointly contributed C$52.5 million to purchase the fully permitted Dokie Wind Project from EarthFirst Canada Inc. The construction of the 300 MW wind project will be resumed by the companies. This wind project is regarded as the largest wind farm in British Columbia, and is located 1,100 kilometers northeast of Vancouver.
A partnership has been formed by GE and Plutonic, which will take care of the construction and operation of the first phase of the wind project. The project will possess the capability to generate 144 MW of power during its first phase and commercial operation is scheduled for early 2011.
A consortium of lenders led by The Manufacturers Life Insurance Company provided C$175 million in fixed-rate, nonrecourse project debt for a term of 20 years. BC Hydro, Canada’s third largest electricity generation firm, will purchase energy from the project under a 25-year energy purchase agreement.
GE and Plutonic have already collaborated to develop hydroelectric power projects and this is the first wind energy investment for the companies in Canada. Under the collaboration, the two companies are developing the 196 MW East Toba River and Montrose Creek run-of-river hydroelectric project. The hydroelectric project will help the province to achieve its self-sufficiency goals by 2016 through the use of 90% renewable energy sources. Two other run-of-river projects, namely the 1,027 MW Bute Inlet Project and the 166 MW Upper Toba Valley project, are also proposed to be built by the companies.
Donald McInnes, CEO and Vice-Chairman of Plutonic Power, said that this joint purchase with GE Energy Financial Services provided the two companies with an opportunity to grow in the wind energy sector. The project will also receive renewable energy incentives under Canada's ecoENERGY program.
Source: www.geenergyfinancialservices.com