Vancouver-based Sea Breeze Power Corp. (TSX-V:SBX) has signed an agreement to build its Knob Hill Wind Farm on northern Vancouver Island.
The company has partnered with Toronto-based electricity generator International Power Canada Inc. to build the first phase of the project, which would generate up to 99 megawatts of clean power.
Sea Breeze has said the project will meet the electricity needs of approximately 100,000 British Columbians.
“The wind industry is a rapidly growing business globally,” said Paul Manson, Sea Breeze’s president and CEO. “We see this as a very positive vote of confidence by one of the world’s leading power generation companies for the future of British Columbia's renewable energy industry.”
The financial terms of the transaction were not disclosed, but Sea Breeze did say International Power would become the majority owner of the project. Knob Hill is located 35 kilometres northwest of Port Hardy.
BC Hydro granted the project a 20-year electricity purchase agreement in March.
Sea Breeze received its provincial environmental assessment certificate in 2004, but had been toiling away on the project for nearly a decade. The company said Knob Hill received strong support from local communities on Vancouver Island and First Nations.
Construction is expected to start in 2011. Sea Breeze hopes to start delivering electricity by late 2012.
BIV last spoke with Sea Breeze in 2008 after it proposed an underwater cable to connect Vancouver Island to Washington State to help meet U.S. power needs. (See “Growing U.S. demand for renewable power sources energizes Vancouver Island transmission line plan” – issue 979; July 29 – August 4, 2008)