Sea Breeze is expected to receive total transaction payments that will amount to nearly CAD$12m ($12.16m), which include milestone payments amounting to CAD $1.86m ($1.88m), triggered at the transaction’s close.
IPR-GDF SUEZ will pay additional milestone payments when the project moves through construction and into commercial production.
IPR – GDF SUEZ will provide 100% of the equity funding for the wind facility, which has been renamed the Cape Scott wind farm as an element of the transaction.
Construction for the wind facility is expected to start during this year, following the completion of amendments to the existing environmental approvals for the project.
The power project is based on a 20-year electricity purchase agreement (EPA) executed with British Columbia Hydro and Power Authority (BC Hydro), represents the first of two phases for development of the Cape Scott wind farm site.
In addition to payments for the transaction, Sea Breeze will receive an ongoing royalty based on a percentage of gross revenue generated by the project through the 20-year BC Hydro EPA, and holds an option to acquire a 10% equity interest in the facility.
IPR-GDF SUEZ is a partnership between Britain’s International Power and France’s GDF Suez.
Canada-based Sea Breeze is a renewable energy company engaged in developing renewable energy projects.
