Alterra Power Corp. (TSX:AXY) has acquired four wind farm sites within proximity to Kitimat, with the hope of providing wind power for new liquefied natural gas (LNG) plants.
Alterra estimates the four sites have a generating capacity of 1,000 megawatts – roughly the equivalent of the proposed Site C dam.
Alterra has also acquired a wind farm site at Knob Hill on Northern Vancouver Island, close to a proposed 99-megawatt wind farm near Cape Scott.
"This transaction further positions us to play a major role in B.C.'s clean energy future," said Alterra CEO John Carson.
"We look forward to advancing and ultimately building these wind projects as a part of the continued growth of Alterra and British Columbia."
Alterra bought the four early-stage wind farm sites from English Bay Energy Ltd. at Banks Island, Porcher Island and McCauley Island.
All are within 150 kilometres of proposed LNG plants at Kitimat. Just this week, Shell Canada that it has partnered with three other companies to build a $12 billion LNG plant at Kitimat – the largest of LNG projects proposed for Kitimat.
New LNG plants, several new mines and electrification of natural gas fields in the Peace Region are expected to exceed the power generation capacity of the propose Site C dam and hydro power plant by two or three times, and B.C. renewable energy companies are hoping to capitalize on the increased need for electricity.
Wind power producers are particularly optimistic, despite concerns about the relative costs of wind power compared with natural gas-fired power.
Under its agreement, English Bay will receive royalty payments during the operations phase of the projects, and may be eligible to receive up to 1.34 million Alterra shares.
Alterra operates six power plants totalling 567 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia's largest run of river hydro facilities and the province's largest wind farm.
