GE and Plutonic jointly contributed CAD52.5m to purchase the fully permitted 300MW project from EarthFirst Canada. The companies have formed a partnership through which they will construct and operate the project’s first phase, which will have the capacity to generate 144MW and is expected to reach commercial operation by early 2011. Construction is scheduled to ramp up next month, with most of the work commencing in the spring.
The Manufacturers Life Insurance led a syndicate that provided CAD175m in fixed-rate nonrecourse project debt for a 20-year term. Energy from the project will be sold to BC Hydro under a 25-year energy purchase agreement.
Donald McInnes, vice-chairman and CEO of Plutonic Power, said: “Our relationship with GE Energy Financial Services enabled a joint purchase of the Dokie wind project, which provides Plutonic with a second near-term operating asset and a new growth platform in wind energy.”
EarthFirst obtained court-ordered protection from its creditors under Canada’s Companies’ Creditors Arrangement Act, and in November, the Dokie partners informed the Court of Queens Bench of Alberta, Judicial Centre of Calgary of their waiver of all remaining due diligence conditions to purchase the wind farm.
The GE-Plutonic partnership has worked with the West Moberly First Nations, Halfway River First Nations, Saulteau First Nations and McLeod Lake Indian Band involved in the Dokie wind project to conclude project consent and support agreements. The partnership has also developed a working relationship with these First Nations and looks forward to working with them to complete the first phase of the Dokie wind project.
The partnership has entered into an agreement with the Canadian government to receive renewable energy incentives for the project under Canada’s ecoENERGY programme. The programme provides renewable energy projects CAD0.01 (before tax) per kilowatt-hour for the first 10 years of power production.
The Dokie wind project is GE Energy Financial Services’ and Plutonic’s first wind energy investment in Canada and expands their relationship beyond hydroelectric power development. With this investment, GE and Plutonic are jointly developing the 196MW East Toba River and Montrose Creek run-of-river hydroelectric project. GE and Plutonic have also proposed to build two other run-of-river hydroelectric power projects: the166MW Upper Toba Valley and 1,027MW Bute Inlet project.
