Finavera Renewables, GE sign $7.5MM JDA for Peace Region wind projects

Source: Finavera Renewables Inc.

Finavera Renewables Inc. (TSX-V: FVR) has entered into a project development partnership with GE Energy, a business unit of GE (NYSE: GE). Under the terms of the Joint Development Agreement (JDA), GE will provide Finavera Renewables with project development funding up to $7.5 million for the Company's Peace Region wind projects in British Columbia. Following an extensive suitability analysis by Finavera, GE shall also be the preferred wind turbine supplier for those projects.

The Finavera projects located in the Peace River region of British Columbia consist of four advanced wind developments which have been awarded long term electricity purchase agreements pursuant to BC Hydro’s 2008 Clean Power Call. Collectively the BC Wind Projects have a nameplate capacity of approximately 301 megawatts. Based on the EPAs and engineering completed to date, the four projects are anticipated to generate more than $100 million in annual revenue when completed. The JDA will provide Finavera with the funding necessary to continue to achieve project development milestones and to move the projects through to financial close. 

The development funding will be repaid at each respective project's financial close and does not impact Finavera's equity position in the projects. GE Energy has co-developed thousands of megawatts of wind projects in North America and that expertise will be applied to this partnership in order to deliver high return projects on time and on budget. 

"We are extremely excited to be working with GE Energy on the development of these wind projects," said Finavera Renewables CEO Jason Bak. "This partnership combines Finavera's exceptional wind projects with GE Energy's outstanding technical experience to produce a team that will ensure the success of these projects. This deal significantly enhances our ability to move our projects to construction and grow our wind portfolio over the next several years." 

The JDA replaces the Development Funding Agreement (DFA) announced by the Company January 21, 2010. The signing of the JDA also removes the DFA security provision against a minority interest in the Company's Cloosh Valley wind project.

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