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Capital Power buys full ownership of wind farm

The first phase of a major windfarm project near Halkirk has been sold. On Monday, Calgary-based Greengate Power and Capital Power in Edmonton announced a deal that will put $33 million in Greengate’s bank account and give Capital full ownership of Halkirk Phase 1, capable of generating 150 megawatts per hour.

The first phase of a major windfarm project near Halkirk has been sold.

On Monday, Calgary-based Greengate Power and Capital Power in Edmonton announced a deal that will put $33 million in Greengate’s bank account and give Capital full ownership of Halkirk Phase 1, capable of generating 150 megawatts per hour.

That leaves Greengate in a healthy position to complete its Blackspring Ridge project near Taber and to move ahead on Phase 2 at Halkirk, said Dan Balaban, president and CEO of Greengate.

“We’re going to use those funds toward developing and constructing the Blackspring Ridge project,” said Balaban.

“The effect of the transaction is that Capital Power now owns 100 per cent of Halkirk 1 and Greengate now owns 100 per cent of Blackspring Ridge 1 and there’s no further contractual relationship between Capital Power and Greengate.”

In a statement released on Monday, officials from Capital Power say the company will move ahead with the Halkirk project and plans to have it ready for commercial operation late in 2012.

Following Greengate’s plan, Capital will incorporate 83 turbines provided by Vestas Canadian Wind Technology Inc., which is the same equipment used at its Quality Wind projects in British Columbia and Ontario.

Greengate had formed a joint venture agreement with Capital Power last December to help proceed on the first phase at Halkirk. The agreement dissolves with the sale of Halkirk 1.

The second phase at Halkirk, also planned for 150 megawatts, has been renamed Paintearth to avoid confusion between the two, said Balaban.

Precise time-lines for the Paintearth project have not been set.

“We’re committed to continuing to work in (Paintearth) County and develop the second phase of the project,” he said.

“All our land is secured, we’re collecting wind data on it and moving through the development process.”

bkossowan@www.reddeeradvocate.com