Owners of a proposed 22-turbine wind energy project in Colchester County will proceed despite the company’s recent financial troubles.
The president of EarthFirst Canada Inc., Linda Chambers, confirmed the company is reviewing its three operations, two projects in British Columbia and the proposed 45-megawatt Nuttby Mountain wind energy project in Colchester County.
The "strategic review" was ordered by the company’s board of directors in late August after it was revealed in July that its Dokie 1 wind energy project in B.C. incurred cost overruns of $35 million, and revised wind energy estimates meant that increased project financing would be required.
She said all operations are being reviewed to maximize shareholder value, but the board of directors has endorsed the Nuttby Mountain project.
"Let me assure you our commitment to Nuttby Mountain has not changed at all," Ms. Chambers said Tuesday in a telephone interview.
In the past week, EarthFirst submitted the Nuttby project for a federal environmental assessment, and the company is negotiating deals for wind turbines and warranty agreements, she said.
The complete installation of the turbines is scheduled for 2009.
EarthFirst announced in March it would buy the Nuttby Mountain project from Atlantic Wind Power Corp. and its partner, Cobequid Area Wind Farms.
At the time of purchase, EarthFirst paid $75,000 cash and $374,000 in shares for the Nuttby project. The deal went through in May, when shares were trading in the range of $1.80. The stock crashed this summer to 22 cents a share and is now trading around 40 cents, said Ms. Chambers. Those same shares are now worth around $83,100. She blames the drop on the news of Dokie I’s cost overruns and a gap in financing.
"Because it was our first flagship project, it was not a good thing to have happened," Ms. Chambers said. "The economy is very volatile, and when you have a misstep like that, the market reacts very strongly. We have an obligation to shareholders to maximize opportunities."
This spring, Nova Scotia Power announced it will purchase electricity from the Nuttby Mountain project for an undisclosed price.
The wind farm will cost $90 million to $100 million and will be located about four kilometres north of the village of Nuttby and six kilometres east of Earltown. The turbines will produce enough energy to power about 15,000 homes.
EarthFirst was formed last December after a restructuring of Creststreet, a co-owner of the Pubnico Point wind farm.
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