Finavera Renewables: Agreement with GE Energy
Finavera Renewables Inc. is pleased to announce it has entered into a project development partnership with GE Energy, a business unit of GE. Under the terms of the Joint Development Agreement (JDA), GE will provide Finavera Renewables with project development funding up to $7,500,000 for the Company's Peace Region wind projects. Following an extensive suitability analysis by Finavera, GE shall also be the preferred wind turbine supplier for those projects.
The development funding will be repaid at each respective project's financial close and does not impact Finavera's equity position in the projects.GE Energy has co-developed thousands of megawatts of wind projects in North America and that expertise will be applied to this partnership in order to deliver high return projects on time and on budget.
"We are extremely excited to be working with GE Energy on the development of these wind projects," said Finavera Renewables CEO Jason Bak. "This partnership combines Finavera's exceptional wind projects with GE Energy's outstanding technical experience to produce a team that will ensure the success of these projects. This deal significantly enhances our ability to move our projects to construction and grow our wind portfolio over the next several years."
In March, Finavera was awarded 25 years electricity purchase agreements for four wind turbine projects totaling 301 megawatts of installed capacity. The JDA will provide Finavera with the funding necessary to continue to achieve project development milestones and to move the projects through to financial close.
The JDA replaces the Development Funding Agreement ("DFA") announced by the Company January 21, 2010. The signing of the JDA also removes the DFA security provision against a minority interest in the Company's Cloosh Valley wind project.
Jason Bak, CEO
SVP Business Development