Lax Kw'alaams First Nation signs on for wind development

It's another small step of progress for the proponents of a Windfarm development offshore in the Hecate Strait came to an agreement on a commercial deal with the Lax Kw'alaams First Nation.

Nai Kun Wind Energy who have ambitious plans for a couple of sites in the Northwest, have gained access through this agreement for permission to have transmission lines travel through Lax Kw'alaams territory.

While it's another item taken off the to do list for Nai Kun, we are still over a year away from seeing the construction phase of the project begin and new era in energy production get underway on the North coast.

The Daily News featured details of the agreement in Friday's paper.

Windfarm and Lax Kw'alaams reach key agreement
By Kris Schumacher
The Daily News
Friday, February 29, 2008
Pages one and three

The proposed offshore wind farm to be located in Hecate Strait took yet another step toward becoming a reality yesterday with the completion of a commercial deal between NaiKun Wind Energy Group and the Lax Kw'alaams First Nation.

Although it was announced that NaiKun had signed agreements with two First Nations communities regarding access, economic and financial benefits back in December, the parties were not named at the time. The offshore energy project has a planned transmission interconnection point south of Prince Rupert within the traditional territory of Lax Kw'alaams, and this new agreement provides NaiKun with transmission access for the project.

"Our agreement is built upon a strong foundation of respect, mutual trust and a shared vision for the future," said Michael C. Burns, chairman, president and CEO of NaiKun.

"Clean inexhaustible energy, jobs, sustainable economic benefits and a new approach to business development along the North Coast have been key drivers in our agreement."

In May of 2007, Naikun signed a Memorandum of Understanding with the Council of the Haida Nation in regards to Phase One of the 320-megawatt wind farm. Like that agreement, the new deal with Lax Kw'alaams is contingent upon NaiKun's successful completion of the environmental assessment (EA) process. Currently, NaiKun is in the research and data-collection phase of the EA process and will apply for its Environmental Certificate in 2009, the final step in the process.

"Offshore wind energy is a rare development opportunity that combines environmental stewardship with economic benefits; it is the next generation industry for the North Coast," said Lax Kw'alaams Chief John Helin.

"We are delighted to be working with NaiKun and their effort to provide clean energy alternatives. We hope to build upon our relationship and to collaborate on any future economic opportunities."

The company has experienced great successes in the past few months, with its terms of reference for environmental assessment approved by the federal environmental assessment office in late December, and shares of NaiKun Wind Energy on the TSX have more than doubled in the past year, from $1.46 in February 2007 to $3.05 in the first week of February.

Currently in the process of completing transmission routing studies with Siemens Power, Transmission and Distribution, and with plans to bid into the 2008 BC Hydro Clean Power Call, this agreement represents another step forward for NaiKun in reaching their goal of starting construction next spring.

"We are excited to be working with Lax Kw'alaams and the positive leadership of Chief John Helin," added Burns. "Chief Helin has recognized the potential benefits of offshore wind development and has positioned Lax Kw'alaams at the forefront of clean energy technology. We will continue to look for ways to expand our relationship and work together as the project develops."