Canadian company Northland Power is to buy an early-stage offshore wind farm development from NaiKun Wind Energy Group in the Hecate Strait off British Columbia, Canada.
The deal, which is expected to close in mid-2020 subject to the satisfaction of certain customary conditions, will see Northland take 100% ownership of the NaiKun offshore wind farm.
NaiKun Wind Energy Group said the transaction has been approved unanimously by the its board of directors and the board recommends that the shareholders vote in favour of approval at a special meeting to be scheduled as soon as possible.
Northland said it will work closely with the Haida Nation to explore the project details and potential involvement in the development.
If the project reaches financial close, NaiKun Wind Energy Group will receive a payment based on the size of the developed project, which is expected to be equal to the majority of the company’s historical development costs.
NaiKun will also receive cash payments each year once the wind farm becomes operational after the operating costs and specified return on equity have been recovered by Northland.
There is also an option for NaiKun to take a 10% interest in the project.
Northland Power chief executive Mike Crawley said: “Northland can apply both its global offshore wind experience and long track record developing Canadian power projects to this project.
“However, before anything else happens we will be reaching out to the Haida Nation to discuss the project and how it could potentially move forward.”
Meanwhile, Northland has completed the acquisition of the Dado Ocean Wind Farm Company in South Korea, which was announced in February.
The project is in early stage development and includes multiple sites located 35km off the southern coast of the Korean Peninsula.
Northland said that, since announcing the acquisition in late February, the company has identified additional early stage development sites in the proximity of the original sites, that could provide the opportunity to increase the capacity to approximately 1GW.
The company added that it currently does not anticipate changes to its 2020 financial guidance as a result of COVID-19.