NaiKun Wind’s 396 MW wind farm project is in an advanced stage of development, having already received an Environmental Assessment Certificate from the Government of British Columbia and enjoying strong, collaborative partnerships with local First Nations.
NaiKun Wind’s proposal submitted to BC Hydro also highlights the project’s superior wind resource, favourable conditions for construction, scalability, utilization of available transmission capacity, proven Siemens offshore wind turbines and transmission technology, significant economic benefits for North Coast communities, strong public support and no significant environmental effects in the area as further verified by the province’s environmental approval.
The wind power project also benefits from a counter-seasonal resource — generation is highest when demand peaks in autumn/winter and when hydro-based assets are at their lowest. The wind farm project would also effectively eliminate the use of diesel generators for producing electricity on Haida Gwaii.
NaiKun Wind’s proposal is price-competitive compared to offshore wind power projects being constructed in other jurisdictions. In addition, the project’s advanced stage of the development provides a high level of certainty that it can be built for the contracted price. This is a distinguishing feature for the NaiKun Wind project.
NaiKun Wind believes the significant wind energy resource in the Haida Energy Field, situated in northwest B.C.’s Hecate Strait, will need to be developed to sustain B.C.’s green energy advantage, particularly given the historically high rates of attrition in past power calls in B.C. and elsewhere. We believe there is a first-mover advantage for B.C. in proceeding with North America’s first offshore wind energy project.
Going forward, our Company is working with the Federal Government to complete their environmental review process for the NaiKun Wind project, as well as with the Haida Nation on their review. Additionally, we continue to collect wind and wave data that confirms the very high quality of our project’s resource, and continue to support the Haida Nation in its effort to obtain a loan guarantee from the Federal Government that would enable the Nation to become one of the generation project’s equity owners.
In addition to advancing the offshore wind project, NaiKun Wind is working toward near-term acquisition of electricity generation assets in advanced stages of development. NaiKun Wind has been assessing potential projects for several months and negotiations with multiple groups are ongoing. Our goal in pursuing these opportunities is to diversify our risk profile and to secure near-term revenue from renewable energy assets. To support this goal, we have identified key equity partners who share our view regarding the value opportunity in acquiring contracted projects which require engineering, financing and other expertise in order to move to completion. We expect to be able to provide more information on this initiative in the coming months.
As of December 31, 2009, NaiKun Wind has $11.52 million in cash and cash equivalents and will continue to operate so as to preserve cash under an affordable cost structure. We have no current requirement to raise additional capital.
On behalf of the NaiKun Wind team, I thank you for your ongoing support.
Sincerely, Paul Taylor, President and CEO, NaiKun Wind Energy Group Inc.