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Equity for standard offer Ontarion projects
1 October 2008
Energy Farming Ontario has entered into a non-binding understanding with Schneider Power, a Toronto wind developer, to supply an estimated C$22 million in equity finance for the construction of 36.5 MW of wind power under Ontario's program of standard offer power purchase contracts for small projects. The 36.5 MW is split into four separate developments. Under the terms of the deal, Schneider will transfer ownership of the projects to a joint venture company in exchange for "a significant retained interest in the long term cash flows of the projects and a cash fee." Energy Farming will acquire a majority equity interest by contributing sufficient capital to construct the projects, which carry a total price tag of C$86 million. The balance of the project costs will be met with debt financing. Schneider hopes to have two projects on line in 2009 and two operating by mid 2010. Although Energy Farming Ontario has just bought ten DeWind turbines from California's Composite Technology Corp (above), non of the standard offer projects are slated to use DeWind turbines.
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