Jul 27 2010
Sea Breeze Power Corp. is pleased to announce that an agreement (the "Transaction Agreement") has been executed by Sea Breeze Energy Inc. ("Sea Breeze Energy" - a wholly owned subsidiary of Sea Breeze Power Corp.) with International Power Canada, Inc. for the development of "Phase 1" (99 MW) of the Knob Hill Wind Farm (the "Project").
Under the terms of the Transaction Agreement, International Power Canada, Inc. will become the majority owner of Phase 1 of the Knob Hill Wind Farm development. Specific terms of the Transaction Agreement remain confidential at this time. Additional information will be released at a later date.
The Knob Hill Wind Farm is located 35 km northwest of Port Hardy on northern Vancouver Island, within the traditional territories of the Quatsino, Tlatlasikwala, and Kwakiutl First Nations. Phase 1 of the Project is projected to generate sufficient renewable power to provide for the annual electricity needs of approximately 100,000 British Columbians.
On March 31, 2010, the Project was offered a 20 year "Electricity Purchase Agreement" ("EPA") by British Columbia Hydro and Power Authority ("BC Hydro" - an electric utility wholly owned by the Province of British Columbia) with respect to the energy output of 99 MW of new wind generation. Construction on Knob Hill Wind Farm's Phase 1 is expected to begin in 2011, with a target date for delivery of electric power in late 2012.
The Transaction Agreement with International Power Canada, Inc. provides an option for Sea Breeze and the three First Nations to purchase equity positions in the project. Sea Breeze would also receive a developer's fee and an ongoing revenue royalty for the duration of the EPA. An Impact Benefits Agreement with the three First Nations is progressing through negotiation.
"We are extremely pleased that International Power Canada, Inc. has chosen to invest in the Knob Hill Wind Farm," said Paul Manson, President and CEO of Sea Breeze. "The wind industry is a rapidly growing business globally. We see this as a very positive vote of confidence by one of the world's leading power generation companies for the future of British Columbia's renewable energy industry."
The Project has received strong support from the Quatsino, Tlatlasikwala, and Kwakiutl First Nations as well as the communities of Port Hardy, Port McNeill, and the Regional District of Mount Waddington.
The Knob Hill Wind Farm was the first wind project to receive an Environmental Assessment Certificate within British Columbia. Upon completion of construction, it will be the first operating power generation facility initiated by Sea Breeze, whose development team is presently investigating an additional 180,000 hectares for wind power development throughout British Columbia.
Source: http://www.seabreezepower.com/