Finavera Wind Energy CEO Jason Bak said, "Finavera continues to build substantial value in its core assets and the Company believes the current value of these projects is substantially greater than the Company’s current market capitalization. These assets include four 25 year power purchase agreements with BC Hydro that will generate approximately $1 billion dollars in revenue over their lifetime. The great success of receiving an Environmental Assessment Certificate for the Tumbler Ridge Wind Energy Project validates the efforts of our development team and provides the basis for future permitting work."
"We are currently assessing the financing options for each of our British Columbia projects. These options include joint ventures, 100% equity opportunities with an on-going carried interest, the sale of a project, or arranging third party project finance. Extensive discussion and negotiations have occurred with a number of prospective financial partners involved in the banking and energy sectors and we are highly confident of completing the financing option that is in the best interest of our shareholders, in a timely manner. The Company will disclose its preferred finance options for each Project once binding agreements have been executed," Bak concluded.
The Company’s 47 megawatt ("MW") Tumbler Ridge Wind Energy Project received an Environmental Assessment Certificate. B.C. Minister of the Environment Terry Lake and Minister of Energy and Mines Rich Coleman made the decision to grant the EAC after considering the review led by B.C.’s Environmental Assessment Office ("EAO").
The 105 megawatt Cloosh Valley Wind Project in Ireland was granted full Planning Permission from An Bord Pleanála, the Irish regulatory agency responsible for development and approving strategic infrastructure. Planning Permission is the final regulatory hurdle for the Cloosh Valley Wind Project and provides a clear route to financial close, construction and operation of Ireland’s largest onshore wind project. At financial close, the Company will receive a further payment of €7,140,000.
The Company signed a Memorandum of Understanding ("MOU") with the McLeod Lake Indian Band for the development of the Company’s 47 MW Tumbler Ridge and 77 MW Wildmare Wind Energy Projects being developed in the Peace Region of British Columbia. The MOU marks the beginning of a partnership between McLeod Lake Indian Band and Finavera that will see benefits flow to both parties through the construction and operation of the wind projects that will produce 124 megawatts of clean, renewable electricity.
Summary of Financial Results
In 2011, the Company incurred a net loss of $3,240,975. This compares to net income in the prior year of $1,638,177, a difference of $4,879,152. The difference was mainly the result of changes in three primary items. First, during 2010, the Company recorded income of $3,110,673 from discontinued operations. The income was due to a gain recorded as a result of writing off debts in a subsidiary when it was disposed of. Second, also in 2010, the Company recorded a gain on the disposal of Cloosh Valley Wind Project of $1,408,283 as a result of receiving the first €1,260,000 ($1,696,590) instalment, out of a total purchase price of €8,400,000 (approximately $11,000,000), with the final payment to be received on financial close of the project. And third, in 2011 the Company entered into a settlement agreement with a creditor of a former subsidiary in the amount of $960,983 to settle a longstanding dispute. Consequently, all other net expenses totalled $2,279,992 in 2011 compared to $2,880,779 in 2010, a decline of 21%. In 2011, the Company incurred BC wind project development costs of $6,477,802, compared to $5,170,321 in 2010. To date, the Company has incurred total BC Project costs of $17.2 million.
Finavera Wind Energy is a wind energy development company focused on developing, constructing, and operating wind farms in North America and Ireland. Our mission is to create and operate a viable renewable energy business while protecting and enhancing the physical and social environment. In British Columbia, Canada, projects totaling 301 MW have been awarded 25 year Electricity Purchase Agreements. In Ireland, the Company has signed a co-development agreement with Scottish and Southern Renewables for the 105MW Cloosh Valley Wind Project. Data collection and environmental studies have been continuing at a number of prospective sites in Canada and the United States.