Cape Scott Wind Farm – $ 7,000,000 Payment Received – Start of Construction
TSX VENTURE: SBX
VANCOUVER, June 4, 2012 /PRNewswire/ – Sea Breeze Power Corp. is pleased to
announce the receipt by Sea Breeze Energy Inc. (“Sea Breeze” – a wholly
owned subsidiary of the Company) of a payment in the amount of CAD $7
million under the terms of an agreement executed with International
Power Canada, Inc. (“IPC”) related to the purchase by IPC of “Phase 1″
of the 99 MW Cape Scott Wind Farm (“the Project” – formerly named the
‘Knob Hill Wind Farm’).
The $7 million payment was triggered by commencement of construction of
In addition to payments related to the original asset purchase
transaction and to subsequent milestone achievements of the Project,
Sea Breeze expects to receive an ongoing royalty based on a percentage
of gross revenue earned by the Project through a 20-year Electricity
Purchase Agreement with British Columbia Hydro and Power Authority (“BC
Hydro”). Sea Breeze also holds an option to acquire a 10% equity
interest in the Project.
The Cape Scott Wind Farm is situated 35 km west of Port Hardy on
northern Vancouver Island, within the traditional territories of the
Quatsino, Tlatlasikwala, and Kwakiutl First Nations.
Phase 1 of the Project is projected to generate sufficient renewable
power to provide for the annual electricity needs of approximately
100,000 British Columbians. Commercial operation of the Cape Scott Wind
Farm is scheduled to begin in 2013.
“Sea Breeze is very proud to have initiated British Columbia’s first
coastal wind farm.” said Paul B. Manson, president of Sea Breeze. “We
are extremely pleased that IPC, an affiliate of GDF SUEZ the world’s
largest producer of electricity, has decided to invest in this region,
and in this project. The local addition of 99 megawatts of clean and
renewable energy is a substantial step towards creating a high level of
energy security for the residents of Vancouver Island”.
On November 8, 2011, the British Columbia Environmental Assessment
Office completed the requested amendment to the Environmental
Assessment Certificate for the Project, splitting the original
certificate into two (Phase I for 99 MW by Cape Scott Wind, Phase II
for future Sea Breeze projects) and accepting the updated Project
design to include the addition of the 40 kilometer 138 KV Georgie Lake
Transmission Line, interconnecting the Project with BC Hydro’s
substation in Port Hardy. On March 15, 2012 Fisheries and Oceans
Canada delivered its positive decision on the screening of the Project
under the Canadian Environmental Assessment Act.
About Sea Breeze Power Corp.
Sea Breeze Power Corp., based in Vancouver, Canada, is a diversified
renewable energy company focused on unlocking British Columbia’s
enormous ‘stranded’ renewable energy potential, through the development
of utility-scale wind farms, ‘run-of-river’ hydroelectric projects, and
under a joint venture, the development of several state-of-the-art
electricity transmission projects.
Upon completion of construction, the Cape Scott Wind Farm will be the
first operating power generation facility initiated by Sea Breeze,
whose development team is presently investigating an additional 140,000
hectares of land throughout British Columbia for wind power potential.
ON BEHALF OF THE BOARD OF DIRECTORS
“Paul B. Manson”
PAUL B. MANSON, President & CEO
The 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
SOURCE Sea Breeze Power Corp.