Finavera buying 20MW German wind farm

Vancouver-based Finavera Renewables (TSX-V: FVR) said today it signed an exclusive memorandum of understanding to acquire a 20 megawatt wind farm in Germany.

Financial terms and the name of the seller were not disclosed, but Finavera said the the project vendor is a leading developer in the German wind energy sector responsible for the installation and operation of more than 350 MW of wind projects.

Finavera, which has wind farms under development in Ireland and Canada (see Finavera applies to build 366 MW of wind power in BC), as well as wave energy technology and projects, said the German project is  currently under construction and expected to reach commercial operation by the end of the year.

"This opportunity is an important milestone in the development of our Company as we grow from a project developer to an owner-operator and asset manager," said Finavera CEO Jason Bak.

Finavera said the wind farm has a  guaranteed power sales agreement for 0.112-cents per kWh fed into the grid until 2027.

The company says the project has senior debt financing offered by a major German lender.

In Canada, Finavera is developing a two stage 150 MW project in Alberta. Construction is expected to begin in 2008.

In British Columbia, the company said it has submitted four projects totaling 366 MW into the provincial Environmental Assessment process, and that several other sites are being developed.

Finavera has two pre-construction wind projects under development in Ireland, with a potential capacity of 175 MW.

The company has retained Watson Farley Williams’ Hamburg office to carry out due diligence on today's deal.

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