San Francisco: Pattern Energy Group LP announced completion December 26 of $1 billion in financing for the 300 megawatt Henvey Inlet Wind project located on Henvey Inlet First Nation Reserve No. 2 on the northeast shore of the Georgian Bay in Ontario. Pattern Development and Nigig Power Corporation, a wholly-owned subsidiary of Henvey Inlet First Nation, are joint venture partners in the project.
“This landmark project is a first on many fronts: largest wind project in Ontario, largest on-reserve wind installation in Canada, highest hub heights in North America, and the first to develop a First Nation Environmental Stewardship Regime under the First Nations Lands Management Act,” said Mike Garland, CEO of Pattern Development. “We are proud to be partners with Henvey Inlet First Nation. Together we’re excited to kick off construction on this historic project that will harness the strong and steady winds blowing across the Georgian Bay to create hundreds of local jobs and provide a significant new source of revenue for Henvey Inlet First Nation.”
“This will be the first wind power project on First Nation land, representing an economic turning point in which we are creating a prosperous future,” said Chief Wayne McQuabbie of Henvey Inlet First Nation. “This project’s watershed permitting and real estate regime sets an example for responsible economic development that protects and preserves First Nation land while also generating revenue for future generations. The project also benefits Magnetawan and Shawanaga First Nations with income and employment opportunities.”
Henvey Inlet Wind will use 87 Vestas 3.45 MW turbines with a 136-meter rotor diameter and 132-meter hub height. The project has a 20-year Power Purchase Agreement with the Independent Electricity System Operator for 100% of its production.
Henvey Inlet Wind is being jointly developed and will continue to be jointly owned and operated by Pattern Development and Henvey Inlet First Nation. Pattern Development owns a 50% interest in the project, and Nigig Power Corporation owns the other 50% of the project.
Affiliate company Pattern Energy Group Inc. (NASDAQ & TSX: PEGI) has previously added the Henvey Inlet Wind project to its list of identified Right of First Offer (iROFO) projects. Investopedia explains that a right of first offer is a contractual obligation by the owner of an asset to a rights holder to negotiate the sale of an asset with the rights holder before offering the asset for sale to third parties. If the rights holder is not interested in purchasing the asset or cannot reach an agreement with the seller, the seller has no further obligation to the rights holder and may sell the asset.
See previous story, “Pattern Energy joins Henvey Inlet in 300MW windfarm,” IPPSO FACTO December 2014.