New NS Wind Energy Plant Could Have Enviable Order Backlog

3/9/2010

Korean industrial group Daewoo Shipbuilding and Marine Engineering (DSME) has signed a joint venture with the province of Nova Scotia to build a wind turbine tower and blade manufacturing facility.

DSME will contribute $20.4m to the joint venture and hold 51% of it’s shares, while Nova Scotia will invest $19.6m and hold 49% of the shares. Through its Industrial Expansion Fund, the province is also providing start-up financing for the new venture, including a $30-million loan for new equipment, a loan of up to $6 million for working capital, and a $4-million forgivable loan to acquire land and buildings. The government of Canada says it will also invest $10 million in the plant. The investment, through the Atlantic Canada Opportunities Agency, will be a $5-million repayable loan and a $5-million contribution for adjacent land improvements.

"Today is an exciting day, because this partnership will help create the secure jobs our economy needs, employing up to 500 Nova Scotians within three years," said Nova Scotia Premier Darrell Dexter . The new facility will be located at the former TrentonWorks site, in Pictou County.

"This agreement is expected to support DSME's strategy of diversification into the wind-energy sector and expansion into the North American market," said Nam Sang-Tae, president and CEO of DSME. "We hope this announcement becomes the first milestone to establish a renewable energy cluster in Nova Scotia."

DSME has also signed a memorandum of understanding with Nova Scotia Power for the companies to collaborate on developments that help meet renewable generation goals in Nova Scotia, focussing on-shore and offshore wind and tidal energy.

Mike Magnus, CEO, of leading wind power developer Shear Wind says "Shear Wind's future wind-project plans could keep this plant busy for years to come; the combination of our turbine tower requirement and DSME's production capacity truly leads to a made in Nova Scotia solution."

DMSE is one of the world’s largest shipbuilders. In 2009, DSME acquired American wind turbine manufacturer DeWind and announced plans build a production plant in North America.

Nova Scotia Power is a subsidiary of diversified energy and services company Emera. Nova Scotia Power provides more than 95 per cent of the generation, transmission and distribution of electrical power to 486,000 customers in the province.

(ReCharge)