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Canadian Wind Power May Blow Junior Utility Company Off Lows
By: AllPennyStocks.com News
December 2, 2011
The wind energy sector continues to gain traction worldwide as green initiatives roll-in across the board in a concerted effort to lower our dependence on fossil fuels and slash emission rates. In the States, investors –as well as the general public – can rarely open a newspaper or read news online without seeing regular articles on the topic. Canada seems to have a bit lower of a profile, but the sector is still growing quickly with a currently installed capacity of 4,611 megawatts, enough to power over 1 million Canadian homes. This is roughly equivalent to about 2 percent of Canada’s total electricity demand.
One thing that is striking about Canada’s wind power layout is the plethora of wind farms in the Atlantic Canada region and in Ontario. There are wind farms throughout Manitoba, Saskatchewan and Alberta, but the numbers pale in comparison, with British Columbia only having one wind farm to date. A company looking to capitalize on the growth potential for Western Canada is Finavera Wind Energy Inc. (TSX-Venture:FVR).
Well diversified, Finavera also recently announced that it has taken major steps in its development of a wind project in Ireland. Overseas, its 105 megawatt Cloosh Valley Wind Project has been granted full Planning Permission from An Bord Pleanála, the Irish regulatory agency responsible for development and approving strategic infrastructure. The Planning Permission is an important milestone that brings the project closer to financial close. Assessments from the targeted location of the Cloosh Valley Wind Project have identified wind speeds of 8.9 meters per second.
Closer to home, Finavera is focused on the British Columbia Peace Region, one of three areas in the province that have prime wind energy resources. The company has four advanced wind projects in the region which have been awarded long term Electricity Purchase Agreements pursuant to BC Hydro’s 2008 Clean Power Call. Collectively the BC Wind Projects have a nameplate capacity of approximately 301 megawatts and are anticipated to generate more than $100 million in annual revenue when completed.
Today, Finavera reported the signing of a Memorandum of Understanding with the McLeod Lake Indian Band for the development of Finavera's 47 megawatt Tumbler Ridge and 77 megawatt Wildmare Wind Energy Projects being developed in the Peace Region. The MOU marks the beginning of a partnership between McLeod Lake Indian Band and Finavera that will see benefits flow to both parties through the construction and operation of the wind projects that will produce 124 megawatts of clean, renewable electricity.
The agreement with McLeod Lake Indian Band is the second of five such agreements that the Company hopes to conclude. The Company signed an MOU with Halfway River First Nation in 2010. Discussions with three other First Nations are currently ongoing.
Shares of FVR have been on a slide throughout 2011. But, trading around 50 cents a share, the value is at similar levels seen in 2010 when the price promptly spiked to $1.65. With these recent developments and production drawing closer, Finavera may be a bit of a sleeper looming in the wings and worthy of a much closer look. Proper due diligence is encouraged.
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