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| February 4, 2010 |
| NaiKun Wind: Quarterly Shareholder Update |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2010) - NaiKun Wind Energy Group Inc. (TSX VENTURE:NKW) distributed a quarterly project update to shareholders after the close of markets yesterday. The content of the update appears below.
NaiKun Wind Quarterly Shareholder Update
Welcome to the NaiKun Wind Quarterly Shareholder Update for January-March 2010. The previous quarter's Update presented a comprehensive look at Clean Power Call scheduling, NaiKun Wind's environmental assessment process, the Haida Nation's plan to acquire an ownership position in our 396MW project, and renewable energy development pledges from the B.C. Government. In this issue, we'll bring you the latest on each of these files, talk about an important addition to our project team, and also provide some dates to put on your calendar for potential news on our company and sector.
Clean Power Call
Given the comprehensive overview of the Clean Power Call schedule presented in last quarter's Update, we will keep this section brief. What most shareholders want to know is when contract awards will be announced. In late December 2009, the British Columbia Utilities Commission granted BC Hydro's request for an extension of the deadline by which it must make its Clean Power Call contract awards to March 31, 2010. While it is disappointing to learn of a further extension in the Call timeline, it may actually work to the advantage of proponents such as NaiKun Wind who have significantly advanced their work on the First Nations and environmental assessment fronts.
Given this, and the level of due diligence BC Hydro is conducting on the proposals, it is reasonable to assume that contract award announcements will begin in the near future.
Environmental Assessment
NaiKun Wind's project is the first of its type in Canada and we were pleased that British Columbia's Environmental Assessment Office conducted a thorough review on schedule and granted NaiKun Wind an Environmental Assessment Certificate on December 10, 2009. The receipt of our provincial approval puts us in a select group among the 47 remaining Call proponents, as the number of projects to have reached this milestone is a handful at best.
We are now waiting for the Federal Government to finalize its review. Given that the federal agencies took part in the harmonized federal-provincial review, it should not be long before we receive word from Ottawa. The Haida Nation has also conducted its own environmental assessment, much of it paralleling the harmonized federal-provincial process, though with a greater emphasis on studies such as the traditional use of the area.
Haida Enterprise Corporation Making Progress with Federal Government
Haida Enterprise Corporation (HaiCo) and NaiKun Wind signed a Memorandum of Understanding in August 2009 giving HaiCo the opportunity to acquire up to 40% of the 396MW project. Since early September 2009, HaiCo representatives have held a number of discussions with Federal Government officials, seeking support for the plan that would see Ottawa assist with the equity participation by providing a loan guarantee to HaiCo.
This being the largest investment the Haida Nation has ever considered, the Nation's leadership will be seeking the support of the Haida people through a general vote. Four information sessions for the Haida community will be held in advance - two on Haida Gwaii, plus one each in Prince Rupert and Vancouver. A "Yes" result would lead to HaiCo making its final approach to Ottawa. It is anticipated that the vote will take place in February. NaiKun Wind is supporting the Council of the Haida Nation in its work to ensure that the Haida people have the information they need to make an informed decision.
NaiKun Wind believes the investment is an excellent opportunity for the Haida Nation. Cash flow from the project could, among other uses, support development in timber, aquaculture and tourism on Haida Gwaii.
Top Danish Marine Contractor Joins our Team
We are pleased to say that NaiKun Wind signed a Letter of Intent with Danish firm MT Hojgaard in the fourth quarter covering design, supply and installation of foundations, inter-array cables and other key project elements. MT Hojgaard is a leading marine contractor for offshore wind energy projects in Europe and we will benefit greatly from their experience. MT Hojgaard will be working with Siemens and our consulting engineers on the project, giving us a superb line-up in terms of expertise in offshore wind farm design and construction.
B.C. Energy Sector Developments
In the previous quarter's Update, we discussed at length efforts by the Government of British Columbia to follow through on commitments made in its August 2009 Throne Speech, explaining that several steps had already been taken, including the formation of a cabinet-level committee chaired by the Premier to review input from a newly formed Green Energy Advisory Task Force (comprising four advisory groups).
These groups submitted their reports in January and the government is now assessing the recommendations, deciding changes that need to be made in order to bring greater efficiency to procurement, First Nations consultation, and other important processes. The government has also made it clear that B.C.'s abundant renewable energy potential brings the opportunity to establish a vibrant electricity export industry that would serve the province through jobs, skills development and revenue creation that extend over generations. British Columbia's economy has been built on the export of goods and services, and power is a value-added commodity that the province can sell to others after it has met its own needs. In addition, by exporting locally produced clean energy, British Columbia can play an important role in helping to address climate change, including the challenges faced along the west coast of the continent.
Investors in B.C.'s renewable energy sector have welcomed the government's stated goals since 2007 but been disappointed by the follow-through. That might be about to change, though, as we are now seeing a progression from ideas to action, as evidenced by the Special Direction on Burrard Thermal and the efficiency displayed by the Green Energy Task Force. Investors have clear expectations that the B.C. Government will make hard commitments to specific changes and actions, followed up with an unyielding focus on execution....the results must match the words. With leadership at the Provincial Government level, B.C. definitely has the resources and ability to become a global leader in clean energy generation and supply.
We expect that the Provincial Government will move in the coming weeks with a set of initiatives on the clean energy front. Specifically, NaiKun Wind expects that the Throne Speech on February 9 and the Olympics-related Climate Action and Clean Energy reception on February 15 will be showcase events for the Province and the Premier to unveil initiatives to regain the impetus on green energy development. We will ensure that investors are updated on any announcements that arise from these two important events.
Conclusion
NaiKun Wind continues to make significant progress in the development of its offshore wind project, as evidenced by the recent granting of a provincial Environmental Assessment Certificate, advancement in welcoming the Haida Nation as a potential generation company equity partner, and the addition of a global leading marine contractor to carry out the important foundation preparatory work in cooperation with Siemens Wind Power, which will provide the turbines. We are also looking forward to BC Hydro meeting its commitments on announcing successful proponents in the Clean Power Call.
We are often asked what our next steps would be following receipt of an Electricity Purchase Agreement. NaiKun Wind would move quickly to finalize arrangements with our project co-owners, sign supplier agreements, finalize project permits and procure project financing.
I would like to invite investors to watch a currently scheduled interview in which I will be participating on February 9. It will be aired on Canada's Business News Network at 10:50 a.m. EST. I expect the interview to focus on the project's status.
As always, I thank you for your ongoing support of the team and the project.
Sincerely,
Paul Taylor, President and CEO
NaiKun Wind Energy Group Inc.
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. | |
| CONTACT INFORMATION:
NaiKun Wind Energy Group Inc. - Investor Relations Enquiries
Peter Murray
Manager, Investor Relations
604-631-4494
pmurray@naikun.ca
or
NaiKun Wind Energy Group Inc. - Media Enquiries
Doug McClelland
Director, Communications
604-631-4487
dmcclelland@naikun.ca
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| INDUSTRY: Energy and Utilities - Alternative Energy, Energy and Utilities - Utilities, Environment - Air Pollution Control, Environment - Natural Resource Management, Environment - Regulations and Law | |
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