As part of the deal, Suncor will make a minority equity investment in Northern Power Systems.

The two companies see potential in designing wind-based systems to replace the traditional diesel generation used by many remote communities for power. Many parts of northern Canada are not connected to utility grids and have to rely on island systems for their electricity supply.

As well as developing projects for specific communities, the joint venture also hopes to actively develop wind farms itself. Suncor has committed itself to investing $100 million in alternative and renewable energy projects by 2005.