Formerly referred to as the Kingsbridge II Wind Power Project ("Kingsbridge II"), K2 will continue to be developed in the Township of Ashfield-Colborne-Wawanosh ("ACW") in southwestern Ontario. The wind farm project has an expected capital cost of $750-900 million, most of which will be funded through project financing.
The Ontario Power Authority has signed a Power Purchase Agreement ("PPA") for K2. The completion of K2 is subject to obtaining necessary corporate approvals, the execution of definitive agreements, and the receipt of regulatory approvals. The partners expect that construction would begin in 2013, with commercial operation in 2014.
At the commencement of commercial operation, each of the three partners will have an equal economic interest in the project. Capital Power will contribute the project lease agreements and development work completed to date to the partnership, while Samsung and Pattern will contribute the PPA and transmission access rights.
Capital Power has been actively developing the project since 2006, and operates the nearby Kingsbridge I wind energy project. Capital Power will continue to lead the provincial Renewable Energy Approval (REA) process for the project. Samsung will serve as the engineering, procurement and construction contractor, and the partnership will finalize the wind turbines and supplier.
"This agreement creates an opportunity for the development of one of Ontario’s most promising renewable energy projects," said Brian Vaasjo, Capital Power Corporation’s President & CEO. "Since its commissioning in 2006, our nearby Kingsbridge I project has twice been Ontario’s best performing wind farm as measured by annual capacity factor. K2 will add significantly to Ontario’s renewable energy resources, and is being developed in a proven wind regime."
"Canada is a very important market for Samsung and we support the province’s commitment to green energy and related industries. We are pleased to announce our partnership with Capital Power, in cooperation to build one of Ontario’s premiere wind farms which will serve Ontario’s growing power needs. K2 will provide a significant portion of the equipment demand needed to establish our successful manufacturing base here in Ontario – part of many significant milestones announced at the signing ceremony of the Green Energy Investment Agreement between the Korean Consortium and the Province of Ontario," stated Cheol-Woo Lee, Senior Executive Vice President, Samsung C&T Corporation.
"Pattern is pleased to partner with Capital Power and Samsung on this project, located in one of Ontario’s proven wind regimes," said Mike Garland, CEO of Pattern Energy. "We look forward to completing the permitting process and beginning construction of the project, so that we can start producing economic benefits for the landowners and the community, as well as generating clean and renewable energy for Ontario."
The development of K2, together with other projects led by the Korean Consortium and its development partners, is expected to contribute to the creation of hundreds of jobs in Ontario by facilitating the local manufacture of turbine blades and towers, development-stage work for construction trades, and ongoing operations, maintenance and support services.
Capital Power is a growth-oriented North American independent power producer, building on more than a century of innovation and reliable performance. The Company’s vision is to be recognized as one of North America’s most respected, reliable and competitive power generators. Headquartered in Edmonton, Alberta, Capital Power has interests in 34 facilities in Canada and the U.S. totalling nearly 4,900 megawatts of generation capacity. Capital Power and its subsidiaries develop, acquire and optimize power generation from a wide range of energy sources.
Founded in 1938, Samsung C&T is the mother company of the Samsung Group, South Korea’s largest conglomerate with interests in electronics, chemicals, finance, and numerous other fields. Today, the company’s two business groups – Trading & Investment and Engineering & Construction – are involved in a broad and growing portfolio of businesses, delivering creative, integrated business solutions to customers worldwide through a network of over 100 offices in 44 countries.
Both business groups have achieved many landmark accomplishments over the years in preparation for such an opportunity – among them, launching Korea’s first utility scale solar energy project and building the world’s largest skyscraper. Samsung C & T, Korea Electric Power Corporation (KEPCO) and Pattern Energy Group LP ("Pattern Energy") plan to build and operate the world’s largest renewable energy cluster in Southern Ontario. Samsung was selected by the Ontario Government for its rapidly expanding expertise in the alternative energy field, but also for the proven track record of constructing projects of similar scale from planning and financing to execution. Samsung and its partners intend to take advantage of Ontario’s talented workforce and hire locally. Samsung C&T is an emerging global leader in new and renewable energy solutions with projects in Canada, the United States, Costa Rica, Korea, France, Italy, Greece, and Turkey.
Pattern Energy Group LP is an independent, fully integrated energy company that develops, constructs, owns, and operates renewable energy and transmission assets in the U.S., Canada and Latin America. With a long history in wind energy, Pattern’s highly-experienced team of scientists, engineers, construction experts, and legal and financial professionals has developed, financed and placed into operation more than 2,500 MW of wind power projects. Pattern is strongly committed to promoting environmental stewardship and is dedicated to working closely with landowners and communities to create premier renewable energy projects. Currently operating 520 MW of wind energy in North America, Pattern is scheduled to start construction on new projects totalling more than 1,000 MW over the next 12 months. The Company’s full development pipeline exceeds 4,000 MW of renewable energy and transmission projects. Pattern has offices in San Francisco, San Diego, Houston, New York, and Toronto.