A Bedford renewable energy company is borrowing $5 million for the development of a wind project in Alberta.
Genera Avante Holdings Canada Inc., majority owner of Shear Wind Inc., is loaning Shear Wind money for project development, expenditures and operating expenses, the company disclosed in a filing with securities regulators on Friday.
The loan will be advanced to Shear Wind’s Alberta subsidiary, Vindt Resources Inc., and an initial amount of $3 million will be loaned at an interest rate of 10 per cent.
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.
This news comes as Shear Wind, a publicly traded company formed in 2004, is on schedule to meet its current contractual obligation to provide Nova Scotia Power with 20 megawatts of wind-generated electricity, enough for about 6,000 homes, by the end of December.
The green energy is being generated at the $150-million wind turbine park near New Glasgow.
Glen Dhu Wind Energy was supposed to be in operation by the end of 2009. However, the company had difficulty raising money during the recession, which delayed the project by a year.
The company has installed nine wind turbines in Pictou County. Over the next few weeks, it will install another three turbines. By the end of March, it aims to have another 15 installed.
The site straddles Antigonish and Pictou counties.
Shear Wind’s project is one of six contracts Nova Scotia Power signed with wind developers in 2008 for 247 megawatts of electricity, enough for 87,000 homes, to be generated by late 2009.
Nova Scotia Power has purchased two of the struggling projects, which should be fully operational by the end of this year, and bought a 49 per cent stake in Renewable Energy Services Ltd.’s Point Tupper wind project, which is already producing power.
Shares of Shear Wind remained unchanged at 21 cents Wednesday on the Toronto Stock Exchange.
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