Canadian Hydro Updates Wolfe Island Wind Project ...................................................
CALGARY, ALBERTA Feb. 13, 2009 - Canadian Hydro Developers, Inc. (Canadian Hydro or the Company) (TSX:KHD), through its wholly-owned subsidiary Canadian Renewable Energy Corporation, announced today that its 197.8 MW Wolfe Island Wind Project (the Project) is expected to achieve a target in-service date of June 30, 2009 (previously - March 31, 2009). Harsher than expected winter weather conditions have pushed back the project completion and as a result, the project schedule has been revised for the remainder of the winter; reducing the total number of turbines erected each week based on performance to date. The updated schedule has resulted in a revised expected capital cost from $450 million to $475 million, a 6% increase. The project continues to be economic providing accretive growth to our shareholders, despite incorporating these changes. The $25 million capital cost increase will be funded through available internal sources.
In spite of the various winter weather challenges, construction continues to progress at Wolfe Island, with 45 of the 86 turbines fully erected, the laying of the 7.8 kilometre submarine cable completed, all turbines and components on the Island, and work underway on the interconnection on the mainland. It is expected that the first two of six electrical circuits, comprising of approximately 30 wind turbines, will be providing energy to the provincial grid in April.
"Our staff, contractors, and subcontractors have performed admirably in the face of adverse working conditions and we are proud of them for all that has been accomplished to date," said John Keating, CEO of Canadian Hydro.
The Project, located on Wolfe Island near Kingston, Ontario, is 100 per cent owned and will be operated by Canadian Hydro. It is expected to generate approximately 594 GWh annually of renewable energy, which is enough to supply about 75,000 average households. The Project has a 20-year RES II Contract with the Ontario Power Authority for the purchase of electricity and Renewable Energy Certificates and will receive funding under the federal ecoENERGY for Renewable Power program.
"We look forward to the completion of construction at Wolfe Island," said John Keating. "The addition of both Wolfe Island and the Melancthon EcoPower® Centre more than doubles our size. This is a major milestone for us as we become a larger company capable of self-financing larger projects."
Canadian Hydro Developers, Inc. is committed to Building a Sustainable Future®. The Company is the largest and most diversified developer, owner, and operator of 20 renewable energy generation facilities in Canada totalling net 496 MW of capacity in operation, 383 MW in and nearing construction, and 1,632 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, Ontario, and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.
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