Shear Wind Inc. president Mike Magnus told shareholders at the company’s annual meeting Wednesday that the firm is trying to recoup a $500,000 penalty it paid to Nova Scotia Power when it failed to deliver wind power on time.
The Bedford renewable energy company forfeited its performance security deposit when it did not deliver wind-generated electricity from its proposed northern Nova Scotia wind farm by the end of last year.
"No, we haven’t given up. . . . That folder has not been put away," said Magnus, responding to a shareholder’s question.
"We think that we will want to discuss it and I’ve made them aware of that."
A Nova Scotia Power employee was in attendance at the meeting and, before it started, was asked by a shareholder if they had brought $500,000.
The company had to forfeit the cash because of a contract it signed with the utility in 2008.
This was tough news for a company that incurred significant losses over the last three years, including a $628,182 loss last year.
The $150-million Glen Dhu wind project was supposed to be operating by now, but Shear Wind was unable to secure financing for the capital-intensive project until late last year when Inveravante, a privately held Spanish utility conglomerate, bought a 62 per cent stake in Shear Wind for $27 million.
Magnus said the company is focused on meeting the new deadline to bring on 60 megawatts of wind power by the end of 2010 or face a $1-million security performance penalty.
"We’re still going forward with Glen Dhu, that’s the good news. People ask me, are we going to meet our Dec. 31 delivery date for Nova Scotia Power? Absolutely we are. We are working really, really hard at getting there," Magnus said to about 30 people attending the meeting at the Halifax Club.
Magnus was tight-lipped about financing for the wind farm when asked if it would come from government, banks or issuing more company shares.
He said a decision on long-term financing will be made by the end of the first quarter of this year.
He quickly added that he has knocked on every government office door but has been unsuccessful in securing any public financing for the wind project.
He also told shareholders the company is currently in negotiations with three wind turbine suppliers and should have a deal within three to four weeks.
Those negotiations may go faster with new partner Inveravante than in the past, when Shear Wind was unsuccessful in purchasing turbines.
Inveravante’s Jose Fernandez Olano, who spearheaded the acquisition of Shear Wind last year, said his company will bring a lot of clout to the negotiating table.
"I think the most thing Inveravante brings (is) expertise in building wind farms and also economy of scale that will benefit all shareholders. The prices we could be getting from wind manufacturers are much more attractive to Shear Wind having Inveravante behind than if Shear Wind was on a standalone basis," said Olano, of Spain.
In the meantime, Shear Wind is pushing ahead with Glen Dhu, located along the border of Pictou and Antigonish counties. On Tuesday, Shear Wind’s plan to locate 14 wind turbines in Antigonish County goes before municipal council for rezoning.
Shares in the wind company were up one cent on Wednesday, closing at 24 cents a share on the Toronto Stock Exchange.
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