Finavera to Acquire 20 MW German Wind Farm

Finavera Renewables Inc. has signed an exclusive Memorandum of Understanding (MOU) to acquire a 20 megawatt (MW) wind farm in Germany, subject to completion of a final purchase and sale agreement and due diligence. The wind farm project is currently under construction and is expected to reach commercial operation in December 2007.

Finavera Renewables CEO Jason Bak said, “This opportunity is an important milestone in the development of our Company as we grow from a project developer to an owner-operator and asset manager. This project is already under construction and is anticipated to generate clean, green electricity by the end of this year.”

“Detailed due diligence thus far has made us aware of several factors that make this project very attractive: it has a two tranche debt financing package offered by a major German lender, there is a guaranteed power sales agreement until 2027, and it provides the company with the opportunity for near-term revenue,” added Bak.

Key project highlights include:

• A Feed-in Tariff power sales agreement providing long term
predictable cash flow as the German Erneuerbare-Energien-Gesetz (“EEG”) guarantees a sales price of EUR 0.0819 cents per kWh fed into the grid until 2027.

• The Project has an estimated electricity yield of 38,550,000 kWh at
P50 levels.

• The Project will utilize ten proven 2MW turbines, under
warranty by the manufacturer and subject to a 12-year maintenance agreement with the same German turbine manufacturer.

• The Project Vendor is a leading developer in the German wind energy
sector and is responsible for the installation and operation of more than 50 MW of wind projects.

Bak concluded, “This acquisition strategy represents the next stage in the corporate development of our company… Generated profits can then be reinvested in achieving key wind project milestones and the development of our AquaBuOY wave energy technology.”

 

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