The Offshore Wind Project
Off the coast of Haida Gwaii in Hecate Strait, the proposed Offshore Wind project will harness some of the world’s strongest and most consistent winds to provide clean renewable energy to generations of British Columbians.
Oceanic Wind has sold the development rights to the Offshore Wind Project in Hecate Strait to Northland Power Inc.
Northland Power Inc., a global energy developer, owner and operator of sustainable infrastructure assets with expertise and capacity to advance early stage renewable energy projects to the next level of development has acquired the rights to develop, build and operate the offshore wind project. Northland will be responsible for all future aspects of the Project’s development. The transaction occurred by way of the Oceanic Wind selling Northland a 100% interest in its wholly owned subsidiary, NaiKun Wind Development Inc.
Pursuant to the Agreement, Oceanic Wind will receive the following:
- upon the Project reaching its financial close, a payment based on the size of the developed project, which is expected to equal most of the historical development costs on the Project (up to $33.75m) and
- upon the Project becoming operational, future annual payments for the life of the Project consisting of a cash distribution from the Project after the operating costs and specified return on equity and
- subject to financial close of the Project, an option to purchase up to a 10% interest in Northland’s interest in the Project.
The transaction was approved by the shareholders at a special shareholders meeting in May
of 2020 and formally closed on Sept 1, 2020.
The Company will make appropriate determinations as to the value and use of the 3
potential revenue streams as Northland Power Inc progresses the Project, always
considering the best interests of the shareholders of Oceanic Wind Inc.