Like a wind at their backs local Wind farm projects are moving forward

The twin developments of wind power on the North Coast are moving forward with the announcement that Katabatic power has selected an engineer for the Banks Island project and that the Mount Hays project has received a licence of occupation from the province for its development for the south side of Mount Hays.

The latest developments were featured on Monday as the front page story in the Daily News.


WIND FARM PROJECTS BREEZE FORWARD, ENGINEER SELECTED
Katabatic Power is working with CH2M HILL to develop two local wind farms
By Leanne Ritchie
The Daily News
Monday, November 05, 2007
Pages one and three

Two wind farms being proposed by Katabatic Power - on Banks Island and Mount Hays - are moving forward.

Last week, Katabatic Power and the Deutsche Bank AG announced they have selected an engineer for the proposed wind farm on Banks Island, just south of Prince Rupert.
CH2M HILL has been chosen to work on the joint venture that is expected to generate 700 megawatts of wind energy on the North Coast.

"We are very pleased to have CH2M HILL working with us to ensure the Banks Island project is a success," said Anthony Duggleby, president and CEO of Katabatic.

"With a worldwide reputation for excellence in energy project development, planning and design, CH2M HILL is an ideal partner as we prepare to bring our project forward as part of BC Hydro's next Call for Power."

The Banks Island North Wind Energy Project is proposed for the north end of Banks Island. Pending First National consultation and environmental approval, the companies hope to install 234 three-megawatt turbines, an access road and 146 kilometres of transmission lines that will feed into the existing British Columbia Transmission Corporation (BCTC) energy grid located near Kitimat.

“Our team is looking forward to working with Katabatic on this ground-breaking renewable energy facility.” said Todd Barthoff, director Sustainable Energy for CH2M HILL.

The Banks Island project is the second wind farm project being undertaken by Katabatic. It is also proposing a smaller wind turbine project on the south side of Mount Hays, within the city of Prince Rupert itself.

Two weeks ago, the Mount Hays Wind Farm project received a licence of occupation from the province for 364.4 hectares of land on the top and south side of Mount Hays.

The company has a 25-year electricity power purchase agreement with B. C. Hydro for the Mount Hays project and hopes to have the province’s first land-based wind farm in operation by the winter of 2008.

The Mount Hays Wind Farm will generate electricity from 17 wind turbines, each capable of producing 1.5 megawatts (MW) of electricity for a project total of 25.5 MW. Once in operation, the Wind Farm will produce enough electricity for 10,000 homes from a renewable, clean energy source.

“The Province of British Columbia and BC Hydro have recognized that wind energy is an important part of a renewable and sustainable energy future, and we are very excited to be playing a leadership role in generating new sources of power for British Columbians,” said Duggleby.

Katabatic Power looks to secure new turbine supplier

A dispute between the proponents of the Mount Hays Wind Farm and AAER Inc. has seen an order for 17 AAER A-1500 wind turbines for the project cancelled, a move that apparently hasn’t been fully accepted by the turbine supplier.

AAER expects Mount Hays Wind Farm Limited Partnership to comply with its covenants on the deal, due to the fact that AAER has on more than one occasion accepted modified payment terms by Mount Hays. It makes for a situation that could be interpreted by some, as to suggest that the financing aspect of the proposed wind farm may be not falling into place as fast as was hoped.

For his part Jonathon Raymond, the Chief Operating Officer for the Katabatic Power Corp., declined to comment to the Daily News about the dispute except to indicate that company considered the agreement cancelled and was pursuing other options to provide the required turbines for the project.

Katabatic Power says that the project is still going ahead despite the dispute and cancellation of the order. Raymond said that things are still on schedule with a construction phase set to begin in the Spring of 2008 with the wind farm on line by October of next year.

That advisory will be noted with interest locally from those that were looking forward to the development moving ahead and creating local jobs both in the construction phase as well as when the wind farm is finally operational.

The Daily News provided some background on the dispute in its Tuesday edition.

‘WIND FARM UNAFFECTED BY DISPUTE’
Katabatic says project going ahead despite the cancellation of order
By Kris Schumacher
The Daily News
Tuesday, August 21, 2007
Pages one and three

The Mount Hays Wind Farm Limited Partnership will be proceeding ahead as scheduled with its Mount Hays Wind Farm project, despite a dispute between them and their original turbine supplier.

Last month, AAER Inc. announced that they had received a notice from Mount Hays Wind Farm Limited Partnership that they were terminating an agreement to order 17 AAER wind turbines.

“AAER vigorously challenges any claim which affects its right under the turbine supply agreement, and remains convinced that the agreement is in force,” said a statement released by AAER July 26.

“AAER intends to require from Mount Hays that it complies with its covenants, given the fact that AAER has, on more than one occasion, accepted to modify the payment terms by Mount Hays in order to grant more flexibility to Mount Hays.”
Chief Operating Officer for Katabatic Power Corp. Jonathon Raymond of which Mount hays Wind Farm Limited Partnership is a subsidiary, was unable to make a comment on the dispute other than to confirm the agreement was indeed cancelled, and that the company was looking to source the turbines from another manufacturer.

“There’s a couple of manufacturers that make machinery of the same caliber, so we’re going to replace the machines that we were going to use with different machines,” said Raymond.

“They’re better in some ways, but we’ll make an announcement, probably within the next month or two about the direction we’re going with that.”

Despite the negativity surrounding the cancellation and the dispute, Raymond is optimistic about the continued advancement of the project.

“Mostly, what we’re focusing on is we just got our land tenure offer and we’re ready to file our environmental assessment. So, we’re still targeting spring ’08 for the beginning of construction, and having the wind farm up and running by October ’08,” said Raymond.

“So things are still on schedule in that respect. Really what we need to do is set the project up, getting all the construction timelines identified and integrated with the turbine delivery as well, so we’re not sitting around waiting. Obviously in Prince Rupert, you don’t want to be doing construction in January.”

AAER Inc., based out of Bromont, Quebec, said they believe discussions between their senior executives and those of Katabatic will be pursued in order to resolve the dispute. In the event that such discussions fail, AAER believes the dispute would be submitted to the British Columbia International Commercial Arbitration Centre, as is provided in the turbine supply agreement.

AAER representatives were unavailable for further comment.

For some Rupertites, it’s a foul wind ready to blow on Mount Hays

Katabatic power is finding that there is a bit of resistance to their plans of harnessing the winds of the North coast, as local recreation users of Mount Hays wonder how much impact development there is going to have on their out door activities.

The discussion arose during a public hearing held by the city to amend its zoning bylaw to make room for the proposed wind farm on Mount Hays. Katabatic hopes to begin construction on 17-20 steel towers this winter, when completed the towers, topped with wind turbines will reach 80 metres high on the south side of Mount Hays.

The Thursday Daily News reported on some of the concerns of the participants at the public hearing held on Monday night.

SOME BLUSTER AT PROSPECT OF WIND FARM
By Leanne Ritchie
The Daily News
Thursday, July 26, 2007
Pages one and three

The proposal to put a wind farm on the south side of Mount Hays had recreational users questioning just how the project would impact the community both now and in the future.

The city held a public hearing to amend its zoning bylaw to allow wind farms to be included as a use in the A1 zone, a zone that currently includes such uses a power lines and generating stations.

“This is to amend the bylaw to allow a wind farm on Mount Hays,” said Zeno Krekic, the city’s planner.

The project proposed by Katabatic Power that triggered the amendment includes installing 17 to 20, 80-metre-tall steel towers topped with wind turbines.

The towers will be embedded deep within the bed rock atop the mountain.

Katabatic has a 25-year power purchase agreement with B. C. Hydro for the sale of electricity produced at the site.

At the hearing, resident Larry Golden asked who would be looking after the road to the top of Mount Hays and whether the city has any guarantee that the steel towers will be removed once the project is completed.

“If these guys find they can’t make a living at this and abandon the project, then what happens?” asked Golden.

Krekic said as far as road infrastructure is concerned, the questions would have to be answered by the provincial agency, Crown Lands.

“As far as the decommissioning of the project, I really cannot comment on that,” said Krekic.

“But projects of this nature have environmental assessment that include statements about decommissioning.”

A representative from Medallion Paging was also at the session to ask how the project would impact the transmission from the company’s tower on the top of Mount Hays.

Once again, Krekic said that question would have to be answered by Katabatic.

The Mount Hays project is expected to produce 25 megawatts, an amount described as being enough to power 12,000 homes.

Jonathon Raymond, chief operating officer of Katabatic Power, said the company hopes to start construction this winter.

Specifically, Katabatic plans to start fixing certain parts of Wantage Road this winter and will construct two new sections of road to access their site. They also plan on drilling holes to determine how best to anchor the towers that will support the turbines.

The company is applying for an ecoENERGY for Renewable Power Grant from the federal government. In order to be eligible for the grant, Katabatic must file an environmental assessment of the project.

ecoEnergy for Renewable Power will provide an incentive of one cent per kilowatt-hour for up to 10 years to eligible low-impact, renewable electricity projects constructed during the four years from April 1, 2007 to March 31, 201..

City council begins process to approve Katabatic wind farm on Mount Hays

The path to wind power on the North coast began its official journey at Monday night's Prince Rupert city council meeting, as the recommendation to place the windfarms as an A1 - Amenities Zone’, received its first two readings.

Next up for the process will be an open public hearing on the proposed change to its zoning bylaw July 23 at 7 p.m. at city hall, where the public will be asked to provide its input to the Mount Hays windfarm project which is expected to produce 25 megawatts, an amount described as being enough to power 12,000 homes.

The turbines have already been purchased and delivery is expected to be in the fall of 2008, Katabatic Power has a 25-year operating agreement with B.C. Hydro and the anticipated start date for that agreement is October 2008.

The Daily News featured the latest developments on the front page of Wednesday's paper.

City is at vanguard of wind farming in B.C.
By Leanne Ritchie
The Daily News
Wednesday, July 11, 2007

Page one

Katabatic Power will be the first land-based wind farm operation to start turning out power from within a municipal boundary.

On Monday night, council passed the first two readings of a bylaw that will allow the 17-turbine operation to produce power on the backside of Mount Hays.

"While it's hardly earth shattering, it's ground breaking. You are sitting here possibly as the first council in British Columbia to include wind farms as a use in its zoning bylaw," said Prince Rupert Mayor Herb Pond.

Zeno Krekic, the city's planning consultant, proposed that the city add wind farms as an acceptable use to its A1 - Amenities Zone'.

The city will hold a public hearing on the proposed change to its zoning bylaw July 23 at 7 p.m. at city hall.

"In Europe, they have been doing this for 20 years ... but in the short time I had, I couldn't find this in Canada and I definitely couldn't find this in British Columbia," said Krekic.

"It seems that the city is unique with respect to projects of this nature being located within municipal boundaries."

Jonathan Raymond, chief operating officer of Katabatic Power, said the company hopes to start construction this winter. Katabatic Power has a 25-year operating agreement with B.C. Hydro and the start date for that agreement is October 2008.

Specifically, Katabatic plans to start fixing certain parts of Wantage Road this winter and will construct two new sections of road to access their site. They also plan on drilling holes to determine how best to anchor the towers that will support the turbines.

The project is expected to produce 25 megawatts, an amount described as being enough to power 12,000 homes.

The company is proposing to build B.C.'s first land-based wind farm in order to meet the growing demand for clean, non polluting energy sources.

They already ordered the turbines and expect those to be delivered in the fall of 2008.

Coun. Ken Cote said he is supportive of the project because it would add a power source in the community. This past winter was rough, given the number of times power was cut off during mud slides and the flooding on Highway 16.

"With our own wind farm up there, we will be able to crank out power until the cows come home," said Coun. Ken Cote.

The area where the wind farm is being located is quite a distance from the community in an area with no other land uses, so Krekic felt it would be easiest to include wind farms in the existing A1 zone, rather than create a whole new zone.

That doesn't mean a wind farm could pop up in any A1 zone in the community, he said, because there are quite a number of provincial land use hoops that any future proponents would have to jump through that would be brought to the city.

The company is also proposing to build a 700 megawatt wind farm, with 234 turbines on the north end of Banks Island. This project is a joint venture between Katabatic and Deutsche Bank AG.

Setback for Katabatic Power

The anticipated summer construction phase for the Mount Hays windfarm has been pushed back towards the fall or possibly next spring.

Apparently the ambitious construction schedule became the victim of unfinished financing and regulatory processes, Katabatic Power is hoping to have all completed by the late summer or early fall and at that time a decision will be made as far as construction timetable goes.

The Northern View has the details posted on their on line website.

Construction time line pushed back
By Shaun Thomas
The Northern View
May 09 2007

When Katabatic Power secured a B.C. Hydro contract for a wind farm on Mount
Hays on July 27, 2006, company officials had hoped to start construction on the project this month. However it now appears that the construction on the 25.2 MegaWatt power project won’t get underway until this fall at the earliest.

“We are hoping to get our contribution agreement from the Federal Government in the coming months. We’re just working on our construction plan and we’re in the middle of closing on our financing and those sorts of things,” said Katabatic’s Chief Operating Officer Jonathan Raymond, noting that the company was also finishing up the land tenure process for the project site.

“Hopefully we will have the whole package wrapped up by late-summer or early fall, and then it depends on where we are and how close to winter we are as to whether we start construction in the late fall/early winter or wait until the spring of 2008 to start construction.”

And while residents may not be seeing much construction on the project over the summer, Raymond says that people on the North Coast shouldn’t be concerned about its future.

“We’re trying to build the first wind farm in the province, so there is all kind of regulatory work being done by the government and everyone is doing the best they can. It just doesn’t go as fast as you would like it to go and we just have to wait for the various processes to work their way through.”

“It is just sort of inevitable project stuff and we are just working through it as quickly as we can,” he said.

Development on the gusts of a subsidized wind

The folks behind the Katabatic Power project, a wind farm development on Mount Hays are hoping that sometime between now and before the eventual upcoming election, that a subsidy for wind power is re-instated by the Conservative government.

The Wind Power Production Incentive was a federal subsidy for wind power, which is similar to one in place for Hydro development, has been in a kind of parliamentary holding pattern ever since the Conservatives took office. All eyes are on Ottawa and its budget preparation maneuvering (a Federal budget is expected in February) to see if the wind subsidies will once again be put back into play, a prospect that many of the developers of wind power in Canada would very much like to see.

That includes the proponents for that fourteen turbine Mount Hays development currently in the developmental phase. A Katabatic spokesman said in the Daily News on Tuesday that while Katabatic could go ahead with the development without the incentive, it would be very difficult.

Part of the delay could be the Conservative government’s suspicions over the greener energy sources, positions and articles like this one from the International Herald Tribune, tend more often than not to shade the Conservatives agenda when it comes to energy.

The good news for Katabatic and by extension Prince Rupert, could be the more environmentally friendly turn that it’s expected the Conservatives will take with the Liberals Stephane Dion now the opposition leader. In the end, good old fashioned politics may end up being the trump card for those looking for wind power to take hold on the north coast.

Thursday’s cabinet shuffle may be the incentive needed to get the Incentive program back into the active file, a process that may finally lead to some forward progress on the much ballyhooed wind farm project. The Daily news had full details in their Tuesday edition.


WIND POWER FIRM HOPING FOR WINDFALL FROM OTTAWA
Katabatic Power wants subsidies to be reinstated
By Leanne Ritchie
The Daily News
Tuesday, January 2, 2007
Page one

The proponents of the Mount Hays wind farm are hoping the New Year includes a regeneration of the federal government’s wind power subsidy program.

The Wind Power Production Incentive, better known as WPPI, has been on hold since the Conservatives took over the federal government last year.

“The program is currently in limbo. It’s a federal subsidy for wind power, similar to the federal subsidy for hydro power,” said Jonathon Raymond, chief operating officer of Katabatic.

“We’ve been waiting for a couple of months on the status of that program.

“We don’t know what they are going to provide or if they are going to provide anything in the new budget. The old system was one penny per kilowatt hour for the first 10 years of the project’s operation.”
Raymond, whose company wants to build a 14 turbine wind farm on the back side of Mount Hays, says they are optimistic the program will be brought back.

“There are no projects in North America that get built, no matter what resource, without some sort of help from the federal government, whether the Canadian or U. S. federal government,’ said Raymond.

“The U. S. government has had what is called a production tax credit for the last several years and every year they have extended it. Basically, that is what we have seen with WPPI but for some reason we’ve gotten into a little bit of a holding pattern with the situation in Ottawa. We expect that we will get a good result, we are just waiting to hear.”

While Katabatic could go ahead without the incentive, it would be very difficult, said Raymond.

“It will make it much more challenging for us (without the program) to get the project going. We can still do it but it certainly adds some complexity… we would have to move some things around to solidify the project without any assistance from the government. “

Katabatic is hoping to file its environmental impact statement with Natural Resources Canada at the end of January, which is the agency that administers WPPI. They are just waiting for confirmation WPPI will exist. But all signs are the program will be brought back.

With Stephane Dion’s Liberal leadership victory, it is likely that the government will take a greener turn and current Conservative Environment Minister Rona Ambrose, who put the program on hold, is believed to be set for a move to a new portfolio.

The Conservatives have taken a lot of criticism about their handling of the country’s environmental issues and Dion has been keen on hammering home that point.

In reaction, the Conservative government is expected to announce in the new year it will revive in some form several Liberal programs it cancelled: EnerGuide, the $920 million, 15 Wind Power Production Incentive and the Renewable Power Production Incentive.

Katabatic was one of three companies that won contracts with B. C. Hydro as independent power producers earlier this year. They hope to have the operation up and running by 2007 and have already ordered their turbines from Montreal based AAER Inc.

Once completed, the Mount hays facility will generate enough electricity for approximately 12,000 homes.

Rupert wind farm continues its forward movement

Considering the windy nature of the area over the last couple of days one would think that a wind farm is money in the bank for Katabatic Power. However, the gusty blows probably are more of a bonus than the required steady stream of wind to make the Mount Hays wind farm a successful operation.

And as they keep progressing forward on their plan to develop power from turbines on the south side of Mount Hays they have reached another important check mark on their to do list.

Katabatic Power recently signed an agreement with their supplier to provide 17 of the 1.5 megawatt wind turbines to be used in the energy project on Mount Hays. It’s expected that the delivery of the turbines will be made in the final quarter of 2007 and will help to get phase one of the project underway. If things go well, there’s a very good chance they will place a second order of 17 when they implement phase two of the plan to provide energy into the BC Hydro grid.

The project and its progress thus far were reviewed in the Daily News on Monday as well as a preview of what may come in the near future.

FIRM ORDERS TURBINES FOR ITS RUPERT WIND FARM
By Leanne Ritchie
The Daily News
Monday, December 18, 2006
Pages three and five

Katabatic Power has taken another major step toward building a wind farm on the far side of Mount Hays in Prince Rupert.

Last month, the privately-held developer of wind power, forged an agreement with Montreal-based AAER Inc. for the sale of 17 of its 1.5 megawatt wind turbines.

They are expecting delivery in the fourth quarter of 2007.

“We really like their technology,” said Jonathon Raymond, chief operating officer of Katabatic about AAER Inc. “It’s a machine that has been in operation in Europe for many years, it’s very efficient machine with a very good maintenance track record.”

Key to the deal is technology transferred from Germany’s Fuhrlander-Pfleiderer, a pioneer of the wind-generation industry in Europe.

AAER has the right to use the German company’s wind technology across North America.

The deal is worth between $35 million and $80 million, including future options and related maintenance contracts.

The range is wide because Katabatic may opt to purchase and additional 17 turbines from AAER to build a second phase of the project in 2008 at Mount Hays, on Kaien Island, south of Prince Rupert.

Raymond said the initial 17 turbines are expected to be delivered in September or October. Following that, the wind farm could be up and running in about eight weeks.

Once completed, the Mount Hays facility will generate enough electricity for approximately 12,000 homes. Last summer, B. C. Hydro entered into an electricity purchase agreement with Katabatic.

Raymond said the company has yet to determine whether it will expand initial plans for Mount Hays or if it will use its option in the contract with AAER to purchase wind turbines for operations elsewhere in B. C.

“It may or may not be desirable for B. C. Hydro,” he said.

Katabatic, which has an office in San Francisco, also has plans for a much larger 3,000 megawatt facility on Banks Island, also near Prince Rupert.

That project is subject to being accepted by B. C. Hydro in its 2007 call for tenders.

“We are in the late stages of a financial transaction for a joint venture partnership with a large financial institution,” said Raymond. “We can’t talk about the details about that yet but we hope to make an announcement sometime in January.”

Although Katabatic’s project would be the first wind farm in B. C., two other companies are working to the same end and also have deals with B. C. Hydro. Dokie Wind Energy Inc. of Victoria plans a 180 megawatt project 40 kilometres west of Chetwynd to be operating in 2009.

As well, Dawson Creek residents formed Bear Mountain Wind and propose to build a 120 megawatt farm near the town.