Scotian Windfields is confident and committed to its Digby Neck wind turbine park project despite the fact its Ontario partner in the development is seeking protection from its creditors.
"The project is still solid in terms of going forward," Scotian president Barry Zwicker said Thursday.
Mr. Zwicker said he was aware of Skypower Corp.’s creditor protection filing before it hit the news and said it is a concern, "but ultimately our concern is for the success of the project."
Skypower announced on Wednesday that it was filing for protection to allow it to restructure under the Companies’ Creditors Arrangement Act. In a news release, Skypower, a company whose major shareholder is the financially troubled Lehman Brothers, said the filing was to facilitate the transition of the company through a sale process.
Skypower is a developer of renewable energy projects with projects under way across Canada and other parts of the world.
Scott Brownrigg, a Skypower spokesman, said Thursday that, "The CAA process should have no bearing on the evaluation of Skypower’s environmental assessment or approvals with either the Digby or other projects we have going on. It’s business as usual."
Skypower president and CEO Kerry Adler said in the release that several potential bidders have expressed an interest in purchasing the company’s assets.
"We expect a vibrant process to maximize value for our stakeholders and preserve the business as a going concern for the employees, customers and suppliers," he said.
As part of the restructuring, Skypower said it has a commitment for US$15 million that will allow it to transition the business through a quick and efficient competitive sales process.
Scotian Windfields of Dartmouth, and Skypower have proposed a 30-megawatt wind farm on Digby Neck. It would be comprised of 20 wind turbines each generating 1.5 megawatts of power.
Mr. Zwicker said, "We have been reassured that the project in Digby, in particular, has got Skypower’s share of funding set aside and quite honestly everything we have seen in terms of the continued involvement of our Skypower partners has been nothing but solid."
He concedes that there is "an issue" but "I don’t think it is a direct issue right now as far as the Digby project is concerned."
In June the provincial Environment Department informed the developers that additional information was required in their application for environmental approval.
Mr. Zwicker said that information has been compiled and is now before the minister, who has 50 days to review the material and make a decision. The 30 days for public review of the project has also been completed.
The plan was to have a project start up in September. Mr. Zwicker still hopes to keep that time line although he admits construction may not begin until late September.
"We are looking to bring this project online during the summer and fall of 2010, so we have got to get started fairly soon," he said.
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