One of the wind energy developers whose project BC Hydro rejected in the recent clean power call announced on Thursday that it’s undertaking a strategic review to find a new business plan.
Naikun Wind Energy Group Inc. (TSX:NKW) said the review will look at all of the company’s options, including continuing to advance its offshore wind-energy project in the Hecate Strait off B.C.’s northwest coast, merging with another company or selling the company entirely.
It’s also restructuring to dramatically cut its costs, including reducing board member fees by 50%.
Vancouver-based Naikun has no debt and $10.2 million in cash and equivalents as of March 31.
Naikun’s 396-megawatt offshore wind energy project could generate enough energy to provide electricity to 130,000 B.C. homes.
The company’s share price fell to $0.26 from $0.72 in five days after it was excluded from the power call in late-March. Shortly after that Paul Taylor, Naikun’s president, told BIV that “the private sector has probably spent $150 million to $200 million on the clean-power call for what, in my view, is a sub-optimal outcome.”
He echoed others in saying he wanted to see a faster and less bureaucratic procurement process (see “Producers seek more power procurement clarity” – issue 1068; April 13-19).