Alterra Power Corp. (TSX: AXY) said in a May 12 earnings statement that it is making progress on several fronts, including with the 204-MW Shannon wind project in Texas.
The company is finalizing terms with the project financing parties for Shannon and expects to complete the financing in the second quarter. A letter of intent with two tax equity partners was completed in February and all project agreements are either complete or in final stages of completion. Road construction and improvements and turbine foundation excavation (on all 119 foundations) are complete, with turbine foundation construction and collector line placement well underway. The company expects commercial operations to commence in the fourth quarter of 2015.
In November 2013 the company acquired a 10% interest in Shannon Wind LLC and its project located in Clay County, Texas. In February 2014, Alterra acquired the remaining 90% of Shannon Wind. Shannon is being constructed under a construction services agreement with M.A. Mortenson Co. The project’s main power transformer has been completed and was manufactured by Siemens Energy and the turbines will be supplied by an affiliate of General Electric. Following the closing of construction financing, Alterra expects to own 50% of the project in partnership with a large energy infrastructure fund. It expects to sell approximately 75% of electricity generated from Shannon under a long-term power hedging agreement, with the remainder sold at market prices.
At the 62-MW Jimmie Creek hydro project in British Columbia, construction is progressing ahead of schedule due to the mild winter. Excavation of the intake has been completed with construction of the intake structure underway, penstock installation is over 65% complete, and building installation at the powerhouse commenced in May. The facility is expected to commence generation in July 2016.
Alterra, in partnership with Fiera Axium, is constructing the Jimmie Creek project, which will sell 100% of its power to BC Hydro under a 40-year power purchase agreement beginning in 2016. Jimmie Creek is being constructed under an Engineering, Procurement, and Construction Management contract with SNC Lavalin Inc.
On Jan, 30, Alterra sold the 15-MW Soda Lake geothermal facility in Nevada and related geothermal development assets to an affiliate of Cyrq Energy Inc. Alterra retained the rights to develop a 40-MW solar project at the site.
During the first quarter of this year, Alterra said that it signed a memorandum of understanding with the Klahoose First Nation to jointly develop the 15-MW Tahumming project, located in the Toba Valley of British Columbia near the company’s Toba Montrose and Jimmie Creek projects.
As of the end of the first quarter, Alterra held a 51% interest in a wind generation project adjacent to Dokie 1 (called Dokie 2) with a projected capacity of up to 156 MW. In March, the company received notice from an affiliate of GE Energy Financial Services (GE EFS) that it does not intend to proceed with advancement of Dokie 2 effective March 16, 2015, and following the completion of an agreement with GE EFS, the 49% ownership interest in Dokie 2 held by GE EFS reverts to the Company for nominal consideration. In 2014, Alterra wrote off the deferred costs and goodwill associated with the Dokie 2 project due to a decline in the economic outlook surrounding renewable energy as a result of the latest Integrated Resource Plan produced by the British Columbia Government and other reasons. The company said it has maintained all existing permits and licenses in good standing and may look to further develop in the future when market outlook improves.