Finavera

Finavera has four advanced wind projects located in the Peace River region of British Columbia 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.

Finavera expects Environmental Assessment Certificates (“EAC”) for its near term projects (Wildmare and Tumbler Ridge) by mid-2011, well in advance of the commerical operation dates, which are planned for the end of 2012 and early 2013, respectively.  Initial assessment of the projects confirms their ideal locations from an environmental standpoint given:

·          Minimized footprint with no high voltage transmission required;

·          Areas are easily accessible, with historic coal mine site and active oil and gas development adjacent to the projects; and

·          No sensitive species or habitats identified in environmental fieldwork performed to date.

Environmental consultants are conducting spring and summer field studies to complete the data set for the EAC applications.  Finavera will submit the EAC applications in the fall of 2010 and a 180 day review period will follow.  During this review period, Finavera and the Environmental Assessment Office will conduct a public open house to gather final public comments.  A final decision on the EAC is expected in Q2 2011.

In January 2007, initial contact was made via introductory letter with all First Nations groups covered by Treaty 8, within whose area the Projects lie.  Following this introduction the BC Environmental Assessment Office (EAO) issued Section 11 orders for all Projects, which identified the subset of Treaty 8 Nations requiring consultation under their legislation.  The four groups identified were the West Moberly First Nations (WMFN), Saulteau First Nations (SFN), MacLeod Lake Indian Band (MLIB), and the Halfway River First Nation (HRFN).

Finavera is building strong relationships with the impacted First Nations groups and support for its BC Wind Projects.  Milestones achieved to date include signed Relationship Protocol with the SFN and signed Capacity Agreements with both the SFN and the MLIB.  Final negotiations are underway with MLIB on a Participation Agreement, which will include capacity payments and a roadmap for final Memorandum of Understanding (“MOU”) negotiations.  Finavera is currently working toward signing Relationship Protocols, Capacity Agreements and final MOUs with the remaining First Nations.