Saturday, June 19, 2010

Shear Wind signs on with new partner


Shear Wind Inc. has formed a limited partnership with Genera Avante Holdings Canada Inc. to push ahead with its $170-million Glen Dhu wind power project that straddles Antigonish and Pictou counties, the company announced Friday.

The Bedford renewable energy company intends to transfer all of the assets in the 60-mega- watt project to the Glen Dhu Wind Energy Limited Partnership.

Genera Avante Holdings Canada is a division of Inveravante, a privately held Spanish utility conglomerate that bought a 62 per cent stake in Shear Wind for $27 million last year.

Details of the purchase price will be disclosed after the terms of the definitive asset purchase agreement are determined, according to a news release issued by Shear Wind.

Shear Wind will retain control of the Glen Dhu North Project.

Shear Wind anticipates finalizing the terms and conditions of the required debt financing for the project within the next several weeks and to close such a financing by the end of July, according to the release.

Shear Wind executives were unavailable for comment Friday.

Last month, the Bedford renewable energy company signed a contract with Enercon Canada Ltd. for wind turbines and a 20-year operational and maintenance agreement for an estimated $100 million.

After delivery, installation of the state-of-the-art turbines will begin this fall.

Electricity from the wind farm will be sold to Nova Scotia Power under an agreement signed in 2008 with the utility for 20 megawatts of energy.

Glen Dhu was supposed to be operating by now, but Shear Wind was not able to secure financing until late last year. The company had to forfeit a $500,000 performance deposit to Nova Scotia Power after it failed to deliver electricity to the utility by the end of last year.

Shear Wind, a publicly traded company formed in 2004, has a number of wind farm projects in various stages of development.

Shares in the company traded Friday at 22 cents per share on the Toronto Stock Exchange.


http://thechronicleherald.ca/Business/1188073.html

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