Capital Power partners with Samsung, Pattern on Ontario wind project

EDMONTON – Capital Power Corp. said Wednesday it will develop a new wind project in southwestern Ontario alongside two energy partners, including a major South Korean industrial company.

K2 Wind Ontario will produce 270 megawatts of electricity, and is expected to be built at a capital cost of between $750 million and $900 million, Capital Power announced after stock markets closed.

The power plant will be funded mainly through project financing.

The company’s partners include Samsung Renewable Energy Inc. and Pattern Renewable Holdings Canada ULC., a unit of a U.S.-based renewable power company.

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The project, formerly called the Kingsbridge II Wind Power Project, will be located in the township of Ashfield-Colborne-Wawanosh. Construction is set to begin in 2013.

The Ontario Power Authority has signed a power purchase agreement for K2. The project needs corporate and regulatory approval to move forward.

Edmonton-based Capital Power (TSX:CPX) has been actively developing the project since 2006, and operates the nearby Kingsbridge I wind energy project.

“This agreement creates an opportunity for the development of one of Ontario’s most promising renewable energy projects,” said Capital CEO Brian Vaasjo.

“Since its commissioning in 2006, our nearby Kingsbridge I project has twice been Ontario’s best performing wind farm as measured by annual capacity factor. K2 will add significantly to Ontario’s renewable energy resources, and is being developed in a proven wind regime.”

South Korea-based Samsung will serve as the engineering, procurement and construction contractor for the project.

“Canada is a very important market for Samsung and we support the province’s commitment to green energy and related industries,” said Cheol-Woo Lee, senior executive vice-president of Samsung C&T Corporation.

“We look forward to completing the permitting process and beginning construction of the project, so that we can start producing economic benefits for the landowners and the community, as well as generating clean and renewable energy for Ontario,” said Mike Garland, CEO of Pattern Energy, a San Francisco-based renewable energy firm.