A $92 million run-of-river power plant on Skookum Creek near Squamish has reached a key milestone in receiving a conditional water licence from the provincial government.
One of the key partners in the deal is real estate developer Concord Pacific, which recently created a new division – Concord Green Energy – as part of a plan to diversify the company with a clean energy business unit.
Concord Green Energy has invested in a wind farm in Saskatchewan and recently partnered with Run of River Power Inc. (TSX-VROR) to build a 25-megawatt run-of-river power plant on Skookum Creek, 10 kilometres east of Squamish. (See “Concord Pacific diversifies, electrifies,” Feb. 12.)
Once operating, it will generate enough electricity for 8,400 homes, although none of those homes would be built or owned by Concord. Concord would own the plant and would receive revenue through a 40-year power-purchase agreement with BC Hydro.
The project will take two years to build, and under an agreement with the Squamish First Nation, it will provide for revenue sharing and jobs for First Nations.
“This project has been under development since 2007 and the culmination of these approvals and authorizations means we can now move forward,” ROR CEO Rick Hopp said in a press release. “The project, expected to be in production in early 2014, will provide considerable value for ROR shareholders and significant economic benefits to the region.”
