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Finavera Renewables Signs an Exclusive MOU to Acquire a 20 Megawatt Wind Farm in Germany
Finavera Renewables Signs an Exclusive MOU to Acquire a 20 Megawatt Wind Farm in Germany.
About this update from Solar Alliance Energy Inc.
[{"type":"text","content":"\n\n\n\nVANCOUVER, CANADA, August 1 /CNW/ - Finavera Renewables Inc. ('Finavera\nRenewables' or the 'Company') (TSX VENTURE:FVR) has signed an exclusive\nMemorandum of Understanding (MOU) to acquire a 20 megawatt wind farm in\nGermany (the "Project'), subject to completion of a final purchase and sale\nagreement and due diligence. The Project is currently under construction and\nis expected to reach commercial operation in December 2007.\n\n\nThe Company has retained the legal services of Watson Farley Williams'\nHamburg office in order to carry out detailed due diligence. Following this\nwork, the Company expects to be in a position to proceed with the transaction\nand release the final details.\n\n\nFinavera Renewables CEO Jason Bak said, "This opportunity is an important\nmilestone in the development of our Company as we grow from a project\ndeveloper to an owner-operator and asset manager. This Project is already\nunder construction and is anticipated to generate clean, green electricity by\nthe end of this year. Detailed due diligence thus far has made us aware of\nseveral factors that make this project very attractive: it has a two tranche\ndebt financing package offered by a major German lender, there is a guaranteed\npower sales agreement until 2027, and it provides the Company with the\nopportunity for near-term revenue."\n\n\nKey project highlights include:\n\n\n-- A Feed-in Tariff power sales agreement providing long term\npredictable cash flow as the German Erneuerbare-Energien-Gesetz ("EEG")\nguarantees a sales price of EUR 0.0819 cents per kWh fed into the grid until\n2027.\n\n\n-- The Project has an estimated electricity yield of 38,550,000 kWh at\nP50 levels.\n\n\n-- The wind farm is offered as a turn-key project with an envisaged\ncommercial operation date of December 2007.\n\n\n-- Senior debt financing is offered by a major German lender.\n\n\n-- The Project will utilize ten proven technology, 2MW turbines, under\nwarranty by the manufacturer and subject to a 12 year maintenance agreement\nwith the same German turbine manufacturer.\n\n\n-- The Project Vendor is a leading developer in the German wind energy\nsector and is responsible for the installation and operation of more than\n350MW of wind projects.\n\n\nMr. Bak concluded, "This acquisition strategy represents the next stage\n...