Sea Breeze Power has received $1.5 million to walk away from its option to buy an equity stake in the Cape Scott wind farm 35 kilometres west of Port Hardy.
GDF Suez Canada, which bought the 99-megawatt wind farm from Sea Breeze for $12 million in 2011, cut the cheque this week.
As part of the original sale agreement, Sea Breeze would have been able to buy as much as 10 per cent equity in the project. While that is now off the table, Sea Breeze is due the balance of the purchase price — about $3 million — and will receive continuing royalty payments based on revenue generated by the wind farm when operational in the fall of 2013.
The farm has a 20-year Electricity Purchase Agreement with B.C. Hydro.
That purchase agreement is the first of two phases of development of the project site. Phase one is projected to generate sufficient renewable power to provide for the annual electricity needs of approximately 100,000 people.
Sea Breeze retains the right to develop Phase two on the project site. — Times Colonist
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