Business
Capital Power, Samsung and Pattern to pursue development of Ontario wind project
TORONTO AND EDMONTON, Aug. 3, 2011 /CNW/ - Capital Power LP ("Capital Power"), the legal enti...
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\n\n\nTORONTO AND EDMONTON, Aug. 3, 2011 /CNW/ - Capital Power LP (\"Capital\n Power\"), the legal entity that directly and indirectly holds\n substantially all of Capital Power Corporation's (TSX: CPX) assets, and\n Samsung Renewable Energy Inc. (\"Samsung\"), and Pattern Renewable\n Holdings Canada ULC (\"Pattern\") (collectively referred to as \"the\n partners\") have entered into a limited partnership (\"the partnership\")\n for the development, construction and operation of a 270 megawatt (MW)\n wind power project to be known as K2 Wind Ontario (\"K2\" or \"the\n project\").\n\n\nFormerly referred to as the Kingsbridge II Wind Power Project\n (\"Kingsbridge II\"), K2 will continue to be developed in the Township of\n Ashfield-Colborne-Wawanosh (\"ACW\") in southwestern Ontario. The project\n has an expected capital cost of $750-900 million, most of which will be\n funded through project financing.\n\n\nThe Ontario Power Authority has signed a Power Purchase Agreement\n (\"PPA\") for K2. The completion of K2 is subject to obtaining necessary\n corporate approvals, the execution of definitive agreements, and the\n receipt of regulatory approvals. The partners expect that construction\n would begin in 2013, with commercial operation in 2014.\n\n\nAt the commencement of commercial operation, each of the three partners\n will have an equal economic interest in the project. Capital Power will\n contribute the project lease agreements and development work completed\n to date to the partnership, while Samsung and Pattern will contribute\n the PPA and transmission access rights.\n\n\nCapital Power has been actively developing the project since 2006, and\n operates the nearby Kingsbridge I wind energy project. Capital Power\n will continue to lead the provincial Renewable Energy Approval (REA)\n process for the project. Samsung will serve as the engineering,\n procurement and construction contractor, and the partnership will\n finalize the turbine model and supplier.\n\n\n\"This agreement creates an opportunity for the development of one of\n Ontario's most promising renewable energy projects,\" said Brian Vaasjo,\n Capital Power Corporation's President CEO. \"Since its commissioning\n in 2006, our nearby Kingsbridge I project has twice been Ontario's best\n performing wind farm as measured by annual capacity factor. K2 will ad...