Wind firm seeks new capital for project9/24/2012
A Nova Scotia renewable energy company will need to raise additional capital now that it has been awarded a new wind power project in the southwest part of the province.
Watts Wind Energy Inc. learned Friday that it has received approval for a new project in the Shag Harbour area under the provincial government’s Community Feed-in Tariff Program.
The program gives eligible groups an established price per kilowatt hour for projects producing electricity from renewable resources like wind, biomass, tidal and hydro.
Watts Wind Energy is a Community Economic Development Investment Fund, a pool of capital formed by people within a specific Nova Scotia community to invest in local businesses.
The 3.2-megawatt Shag Harbour project will bring Watts Wind’s total portfolio to over 20 megawatts of wind power. That makes it the second-biggest COMFIT developer of wind power in the province, after Wind 4 All.
“We’ll probably have to raise more money to develop all of these projects,” said Watts Wind vice-president Paul Pynn.
The company, which has about 65 shareholders, raised roughly $2 million on a previous equity issue.
Watts Wind isn’t sure, at this point, whether it will use one or two turbines to supply the 3.2 megawatts. Pynn said turbines that large will likely have to be built outside Canada.
Watts Wind already has a single 1.5-megawatt wind turbine operating at Watt Section near Sheet Harbour.
“Our main goal is to continue to develop these projects in a way that is responsible to the environment and shareholders,” said Pynn. “We want to keep growing by developing our operating base.”
In a news release, the provincial government said that over 25 community groups have submitted about 100 locally based renewable energy development proposals through the COMFIT program.
The Nova Scotia government wants to increase its renewable electricity generation to 18.5 per cent of total supply by 2013.
(The Chronicle Herald)