Funds landed for 99 MW Prince Edward Island project

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Toronto-based Ventus Energy has raised C$25 million for the construction of the first phase of a C$229 million, 99 MW wind power project in Prince Edward Island through an initial public offering of C$10 units in the Ventus Energy West Cape Windpower LP. The proceeds will be invested in shares of West Cape Wind Energy Inc, a company created by Ventus to construct, own and operate the facility. West Cape will use the money to help finance the installation of the project's 19.8 MW test phase, made up of 11 Vestas 1.8 MW wind turbines. Construction of the test phase is underway and is expected to be complete by the second quarter of 2007. Expenditures during this phase receive special treatment under Canadian tax law, with investors in the partnership units expected to receive tax deductions of up to 93% of the amount invested for the combined 2006 and 2007 tax years. Following completion of a 120 day test period, the company will use additional debt and equity financing to install the project's remaining 44 turbines. Construction of the so-called infill phase is expected to be complete by the third quarter of 2008. Ventus launched the offering in December, hoping to raise C$25-55 million.

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