Vancouver’s Finavera Wind Energy Inc.(TSX-V:FVR) said Tuesday that GE Energy Financial Services (GEFS) will be the key financial backer it needs to begin building what it hopes is the first of four wind energy farms in B.C.
GEFS, which is a financial arm of GE (NYSE:GE), has tentatively agreed to finance Finavera’s $200 million Wildmare project in B.C.’s Peace River region in exchange for a 70% interest in the project.
Finavera’s share price closed Tuesday at $1.51, a 14% increase on the day.
Finavera will serve as managing partner for the 77-megawatt Wildmare project, and provide non-cash equity such as a 25-year energy purchase agreement with BC Hydro.
Finavera and GE said they will jointly arrange debt financing and retain a third-party engineering firm to oversee construction of the project.
As with Wildmare, Finavera has 25-year power purchase agreements with BC Hydro for its three other proposed wind farms.
In total they could generate 293 megawatts, or enough electricity to power 75,000 homes.
Finavera is negotiating with GE to arrange deals for its other wind farms that are similar to the Wildmare deal.