VANCOUVER, March 29, 2011 /PRNewswire/ -- Finavera Wind
Energy Inc. ('Finavera Wind Energy' or the 'Company') (TSX-V: FVR)
announces its 2010 year-end financial results and provides a
corporate update for shareholders.
Finavera Wind Energy CEO Jason
Bak said, "2010 marked an exciting year for the Company and
2011 promises to generate further value for shareholders.
Milestones that we expect to achieve include the award of
Environmental Assessment Certificates for the Tumbler Ridge and Wildmare Wind Energy
Projects, equity and senior debt agreements for the financing of
our first two wind projects, turbine supply agreements, the
selection of a construction contractor and commencement of
construction on the 47 MW Tumbler Ridge Wind Energy Project as well
as significant new project initiation. This year will see our value
grow as we hit these concrete milestones, and demonstrate our
ability to develop wind projects from origination to construction,
and ultimately to operation and revenue generation. We are also
actively exploring expansion opportunities in order to expand our
project pipeline, as we recognize the need for continual growth
once our current portfolio is in operation."
Mr. Bak continues, "North
America is still experiencing the early stages of growth in
renewable energy and we are confident that as wind energy continues
to present a superior energy alternative, our development
experience and partnerships will allow us to be in a key position
to take advantage of future growth and entrench a firm leadership
position in our industry."
Recent Milestones
- Finavera Wind Energy and GE Energy Financial Services ("GE
EFS"), a unit of GE (NYSE: GE), agreed on the indicative terms for
100% of the cash equity investment in the 77-megawatt ("MW")
Wildmare Wind Energy Project, located in British Columbia's Peace River Region.
Finavera would provide the non-cash equity, including the energy
contract, permits and development work to date, and serve as
managing partner. Based on current financial information, it is
estimated that Finavera would retain a 30 percent economic
interest.
- The Company changed its name from Finavera Renewables to
Finavera Wind Energy, Inc., which represents the singular focus on
becoming the premier publicly traded pure wind energy developer in
North America.
- Finavera's 77 MW Wildmare and 47 MW Tumbler Ridge Wind Energy
Projects have successfully passed the screening stage of the
British Columbia Environmental Assessment process.
- Signed a Memorandum of Understanding ("MOU") with the Halfway
River First Nation for the development of the Company's four wind
projects in the Peace Region of British
Columbia. The MOU is a mechanism through which the Halfway
River First Nation has provided its acknowledgement and acceptance
for the Tumbler Ridge, Wildmare,
Meikle, and Bullmoose Wind Projects. The MOU establishes the
processes and sharing of benefits that will ensure an ongoing
positive relationship with First Nations communities.
- Signed a series of agreements for the co-development of the
105 MW Cloosh Valley Wind Project in County Galway, Ireland. Finavera sold a
majority interest in the project to Scottish and Southern Energy
for EUR8.4 million, payable in
stages. Finavera will retain a 10% equity interest in the project
and will participate in all project development functions and
activities.
- Entered into a project development partnership with GE Energy,
a business unit of GE. Under the terms of the Joint Development
Agreement, GE Energy provides the Company with project development
funding up to $7,500,000 for the
Company's Peace Region wind projects. Following an extensive
suitability analysis by Finavera, GE Energy shall also be the
preferred wind turbine supplier for those projects.
British Columbia Project Updates
Finavera is in the process of signing Standard Generator
Interconnection Agreements ("SGIA") with BC Hydro for the four
British Columbia wind projects,
for which the Company has secured 25 year power purchase agreements
with BC Hydro. The SGIA commits the Company and BC Hydro to a
specific commercial operation date ("COD"). The COD date agreed to
between Finavera and BC Hydro is critical as BC Hydro must have
interconnection facilities constructed by this time, and Finavera
must have the wind project constructed and commissioned. The
commercial operation dates for the Company's BC projects have been
adjusted to allow appropriate time for the construction of
interconnection facilities, and are as follows: Tumbler Ridge, November
2012; Wildmare, November 2013;
Meikle, November 2013; and Bullmoose,
2015.
The Company continues to negotiate a definitive equity agreement
with GE Energy Financial Services for the Wildmare Wind Energy
Project. The Company is targeting close of a definitive agreement
in April, 2011. Finavera and GE EFS also are continuing to work
closely to advance Finavera's three other British Columbia wind projects, including the
47 MW Tumbler Ridge, 117 MW Meikle and 60 MW Bullmoose wind energy
projects. The primary focus of discussions centres on the
Tumbler Ridge project, as that
project has the nearest term commercial operation date. Equity
negotiations remain on track to support arranging senior debt
facilities prior to each projects' expected financial close.
The Company continues to advance project engineering with
GENIVAR in the immediate term, with the intent of completing a
competitive bid process and selection of an experienced EPC
contractor prior to financial close. Turbine supply negotiations
are continuing with Tier 1 wind turbine suppliers for the projects.
Finavera intends to execute binding Turbine Supply Agreements in Q2
2011 for the Tumbler Ridge and
Wildmare projects.
The Environmental Assessment Applications for the Tumbler Ridge and Wildmare projects have
passed the screening stage of the British Columbia Environmental
Assessment process, and will enter the Application Review stage
shortly. The Application Review stage must be completed in a
maximum of 180 days. After the Review stage is complete, they will
be considered by the Ministers for an Environmental Assessment
Certificate (maximum 45 days). No fatal flaws have been identified
in the environmental process and the Company is optimistic it will
receive a positive decision from the EAO.
The Company continues to invest significant resources into
developing long term business relationships with the four relevant
Treaty 8 First Nations with the intent to create value-for-value
outcomes for the First Nation communities and for Finavera. The
Company is presently negotiating Memorandums of Understanding with
the Doig River First Nations, McLeod Lake Indian Band, Saulteau
First Nations, and West Moberly First Nations. The company has
previously signed an MOU with the Halfway River First Nation. The
MOUs would cover financial compensation issues, a communications
protocol and a relationship protocol. Finavera is committed to
creating a long term partnership with all identified First Nations
throughout the life of the proposed projects.
Cloosh Valley Wind Project Update
In August, 2010 the Company sold a majority interest in its grid
connection for the Cloosh Valley project, Ireland's largest onshore wind project, to
Scottish and Southern Energy for EUR8.4
million. The consideration is paid in installments up to
financial close of the project. In mid-February, 2011, Eirgrid
(Ireland's national transmission
system operator) provided the Gate 3 Connection Offer for the 105MW
Cloosh Valley Wind Farm. Finavera, its project partners, and
Eirgrid are addressing remaining questions in preparation for a
mutually acceptable Connection Offer.
Summary of Financial Results
In 2010 the Company had net income of $1,400,804, significantly higher than the
$3,333,262 net loss in 2009, an
improvement of $4,734,066 due to
significant decreases in operating expenses of $1,136,032, a gain recorded on the disposal of a
subsidiary of $3,030,069, a gain
recorded on sale of a majority interest in the Company's
Ireland wind project of
$1,408,283, a gain recorded upon the
extinguishment of a convertible debenture of $160,929, and a reduction in financing fees and
interest of $426,071.
Total project activity in 2010 was much higher than in 2009. The
Company incurred total project costs in 2010 of $5,952,849, comprised of $5,483,595 capitalized on the balance sheet and
$469,254 which was expensed, compared
to total project costs of $1,441,777
in 2009, all of which was expensed as incurred.
This financial summary should be read in conjunction with the
Company's December 31, 2010 financial
statements and Management's Discussion and Analysis, both of which
are available on http://www.sedar.com and on
http://www.finavera.com.
Jason Bak, CEO
(All $ figures refer to Canadian dollars)
About Finavera Wind Energy Inc. (http://www.finavera.com)
Finavera Wind Energy is a wind energy development company
focused on developing, constructing, and operating wind farms in
North America and Ireland. Our mission is to create and operate
a viable renewable energy business while protecting and enhancing
the physical and social environment. In British Columbia, Canada, projects totaling
301 MW have been awarded 25 year Electricity Purchase Agreements.
In Ireland, the Company has signed
a co-development agreement with Scottish and Southern Renewables
for the 105MW Cloosh Valley Wind Project. Data collection and
environmental studies have been continuing at a number of
prospective sites in Canada and
the United States.
Statements in this news release, other than purely historical
information, including statements relating to the Company's future
plans and objectives or expected results, constitute
Forward-looking statements. The words "would", "will", "expected"
and "estimated" or other similar words and phrases are intended to
identify forward-looking information. Forward-looking information
is subject to known and unknown risks, uncertainties and other
factors that may cause the Company's actual results, level of
activity, performance or achievements to be materially different
than those expressed or implied by such forward-looking
information. Such factors include, but are not limited to:
uncertainties related to the ability to raise sufficient capital,
changes in economic conditions or financial markets, litigation,
legislative or other judicial, regulatory and political competitive
developments and technological or operational difficulties.
Consequently, actual results may vary materially from those
described in the forward-looking statements.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
For further information:
Finavera Wind Energy
Myke Clark
SVP Business Development
Finavera Wind Energy
+1-(604)-288-9051
mclark@finavera.com
Investor Relations
Spyros Karellas
Pinnacle Capital Markets
+1-(416)-800-8921
+1-(416)-433-5696
spyros@pinnaclecapitalmarkets.ca