March 30 (Renewables Now) - Canadian power producer Northland Power Inc (TSE:NPI) will take over the development of the NaiKun offshore wind project in the Hecate Strait off the coast of British Columbia, Canada.
This was announced on Monday by NaiKun Wind Energy Group Inc (CVE:NKW), which has entered into an agreement to sell its fully-owned unit NaiKun Wind Development Inc to Northland.
Under the terms of the deal, once the project reaches its financial close, NaiKun will get a payment based on the size of the developed scheme and an option to buy up to a 10% stake in Northland’s interest in the project. Also, upon completion of the wind farm, NaiKun will receive an annual cash distribution from the plant after the operating costs and specified return on equity have been recovered by Northland, the announcement says.
The transaction is pending both regulatory and stockholder clearance. It is expected to close in mid-2020.
NaiKun initially teamed up with Ørsted A/S (CPH:ORSTED) to co-develop the project, but the Danish group abandoned the plan in October 2018. A year later, NaiKun said it found a new partner for the scheme, without naming it.
According to its website, the project has provincial and federal regulatory approvals for a capacity of 400 MW.