Diversified 'green' power production growing
By WES KELLER Freelance Reporter
With the commissioning of an additional hydroelectric plant, a biomass generator, and one windgeneration plant, Canadian Hydro Developers (CHDI) has increased its green energy production by about 56 per cent in the first quarter of 2006, compared with the same period in 2005.
In addition to the 67.5 megawatt Melancthon I wind-energy plant, CHDI completed a 25 MW hydroelectric generator near Squamish, B.C., and a 25 MW Grande Prairie EcoPower Centre biomass generator in Alberta.
According to the current financial statement, the company's assets include plants, vehicles and equipment with a net book value of about $388million, up from about $364-million a year earlier. Of the present value, about $19-million is related to the Melancthon II project, designated as "construction in progress."
Among other things, it also has a Wolfe Island (near Kingston) wind plant project in the works, and is bidding on a major power generation plant in B.C.
Among Melancthon I and II and Wolfe Island, the company has committed about $391-million for goods and services. It expects to complete Melancthon II in 2007, and Wolfe Island in 2008.
Although its income from all forms of its electrical generation totaled nearly $127 million in the first quarter of 2006 - up from about $81-million in the same period in 2005 - shareholders didn't reap great dividend rewards. The diluted pershare earnings amounted to two cents, and were lower than expected because the EcoPower Centre hadn't produced up to expectations.
The statement doesn't specifically note the relative expectations at Melancthon, but landowners Arley and Darlene Leader were recently quoted in the Kitchener-Waterloo Record as saying they expect their six turbines will generate a $30,000 annual income, based on current experience. This
would be in keeping with CDHI's earlier predictions.
And the trading value of CHDI common shares shows a modest current growth (TSX-KHD), possibly because nearly 90 per cent of the electricity has been pre-sold under 20year provincial contracts in B.C., Alberta and Ontario.
Outside the financial statements, CHDI CEO John Keating is quoted as saying almost total green energy is certain to be the rule of the future, "it may take 50 or 100 years, but it's certain to come."
And his sentiments appear to be reflected in Pennsylvania, where the state governor has reinstituted the Pennsylvania Economic Development Association with a view to promoting wind energy by installing a number of wind generators.
There, PEDA and the governor envision a period of transition to green energy, and don't find that unusual. They point to the switches from wood to coal, then to oil, and then to natural gas for home heating. Now, they say in
effect, expect a transition to green energy from the present coaland gasfired electrical generators.
And Dr. Suzuki, writing for Canoe News, has expressed support for properly sited and engineered wind farms.
Such is the international climate in which CHDI appears to be forging ahead with green energy projects.
The wind-energy industry generally releases figures based on "installed capacity," but quickly points out that production fluctuates throughout the year depending on weather conditions and other factors including demand at any given hour.
CDHI does speak of the 67.5 megawatt (MW) Melancthon capacity. However, it points out that the Melancthon I plant produced 13,690 MWh in its startup month between March 4 and 31, 2006. According to Chief Financial Officer Kent Brown, that translates into 30.2 per cent of capacity.
So Melancthon I has an installed capacity of 67.5 MW, Melancthon II, 132 MW, and Wolfe Island 198 MW. With completion of both Melancthon II and Wolfe Island, its installed capacity would grow by 330 MW in two or three years, for a 489 per cent growth rate in Ontario.
Mr. Brown says, based on independent wind studies, the long-term
average for the three plants would be 537,000 MWh per year, with the greatest production in the typically windiest late-fall through winter and spring having the greatest production.
The full financial statement is available at canhydro.com |
