Capstone Infrastructure Corp. (TSX: CSE) (TSX: CSE.DB.A) (TSX: CSE.PR.A) (TSX: CPW.DB) announced June 22 that it has secured a Renewable Energy Approval (REA) from the Ontario Ministry of the Environment and Climate Change for the 10-MW Snowy Ridge Wind Park.
REAs are a required step in Ontario for wind, solar and bio-energy generation facilities to proceed to the construction phase. The receipt of this REA completes a major milestone in the permitting and approvals process for Capstone’s pipeline of five Ontario-based wind projects, which, along with a project in Saskatchewan, represent a net capacity of 52.5 MW.
Said Michael Bernstein, President and Chief Executive Officer: “Since last August we have commissioned three wind farms, which represent annual Adjusted EBITDA of [C]$11 million. We look forward to breaking ground on our next phase of construction very soon.”
Aside from Snowy Ridge, Capstone has received REAs for four other Ontario wind projects, including Grey Highlands Clean Energy (18.5 MW), Grey Highlands ZEP (10 MW), Ganaraska (17.6 MW) and Settlers Landing (10 MW). The Riverhurst (10 MW) project in Saskatchewan is awaiting its final permits. All are expected to be commissioned by the end 2017.
“Capstone’s development team has demonstrated exceptional skill at building wind facilities on time and under budget,” said Bernstein. “Building renewable energy facilities is an essential part of our commitment to building value for our shareholders and ensuring a more sustainable future for Canada.”
Once an REA has been issued, any Ontario resident can appeal the REA to the Environmental Review Tribunal (ERT) and require a hearing based on human health or environmental grounds. The ERT has six months to issue a decision once the appeal has been filed. Capstone said it is confident it will succeed in all ERTs its projects are involved with.
Capstone’s mission is to provide investors with an attractive total return from responsibly managed long-term investments in core infrastructure in Canada and internationally. The company’s strategy is to develop, acquire and manage a portfolio of high quality utilities, power and transportation businesses, and public-private partnerships that operate in a regulated or contractually-defined environment and generate stable cash flow. Capstone currently has investments in utilities businesses in Europe and owns, operates and develops thermal and renewable power generation facilities in Canada with a total installed capacity of net 466 MW.