NeWind, a Canadian subsidiary of Massachusetts-based Enel North America, has started construction of the first commercial wind project in the Atlantic province of Newfoundland and Labrador. The 27 MW St Lawrence project, on the Burin Peninsula on the south coast of the island portion of the province, is expected to be in full operation by the end of 2008. Government-owned Newfoundland and Labrador Hydro (NLH) is buying the output of the nine Vestas 3 MW turbines under a 20-year power purchase agreement. "The focus for wind power generated on the island is to supplement Hydro's existing energy supply and to help reduce our reliance on thermal generation," said NLH vice president Jim Haynes. "This is significant to Newfoundland and Labrador's future energy needs and to Hydro's goal of environmental leadership." The electricity generated by the project, estimated to be about 100,000 MWh a year, is expected to offset the burning of more than 165,000 barrels of fuel a year at the utility's 490 MW oil-fired Holyrood Generating Station.