NaiKun Wind Energy company has entered into an agreement to sell the NaiKun Offshore Wind Farm – a project in early stages of development – located in the Hecate Strait off the coast of British Columbia, Canada to Northland Power.
NaiKun said Monday that Northland, being a global developer, owner, and operator of sustainable infrastructure, has expertise and capacity to advance early-stage renewable energy projects to the next level of development.
Upon successful completion of the transaction, Northland will be responsible for all aspects of the project’s development.
“The transaction will occur by way of the Company selling Northland a 100% interest in its wholly-owned subsidiary, NaiKun Wind Development Inc,” NaiKun Wind Energy said.
Upon the offshore wind farm project reaching its financial close, NaiKun Wind Energy will receive a payment based on the size of the developed project, which is expected to equal to the majority of NaiKun’s historical development costs on the project.
Furthermore, upon the project becoming operational, future payments consisting of annual cash distribution from the offshore wind farm after the operating costs and specified return on equity have been recovered by Northland.
Also, subject to the financial close of the project NaiKun Wind Energy will have an option to purchase up to a 10% interest in Northland’s interest in project. The transaction is expected to close in mid-2020, subject to the satisfaction of certain customary conditions.
Northland said it would work closely with the Haida Nation to explore the project details and potential involvement in the project.
“Northland can apply both its global offshore wind experience and long track record developing Canadian power projects to this Project,” said Mike Crawley, President and Chief Executive Officer of Northland Power. “However, before anything else happens we will be reaching out to the Haida Nation to discuss the Project and how it could potentially move forward.”