Finavera Renewables has completed a Purchase and Sale Agreement with Ghost Pine Wind Farm, LP, a wholly owned subsidiary of a major US utility, for the sale of its 75 megawatt (MW) Ghost Pine Wind Project in Alberta, Canada for total proceeds of $4,500,000.

Finavera Renewables purchased two projects in Alberta, the 75 MW Ghost Pine and 75 MW Lone Pine, in 2007. The Company will retain its 50% ownership of the nearby 75 MW Lone Pine project.

Finavera Renewables CEO Jason Bak said, "This sale proves our development business model and illustrates our ability to add value to the Company by developing wind projects. The transaction delivers a profitable outcome to Finavera in a relatively short time frame and we believe this is a good opportunity to monetize this investment. This transaction puts our Company in a much stronger financial position during these difficult market conditions and allows us to continue developing a strong pipeline of projects in British Columbia, Ireland and Alberta.”

The decision to sell the Ghost Pine project is the first step in executing the Company’s strategic plan to focus on developing high return, core wind power projects in order to maximize value and balance risks for shareholders. The Ghost Pine project faced deteriorating credit markets and non-firm power pricing, which reinforced the Company’s decision to monetize this asset. The immediate primary focus remains the continued development of its wind projects in BC and Ireland through partnerships and/or joint venture arrangements. In the medium term, the Company plans to execute on its wind structures and bring these assets to commercial operation. In the longer term, the Company will continue to assemble a diversified mix of revenue producing, renewable energy assets.

Proceeds from this transaction will be used primarily for working capital and the continued development of 293 MW of wind projects entered into the BC Hydro Clean Power Call in British Columbia and the development of the 105 MW Cloosh Valley wind project in Ireland.

Tags: Finavera Renewables Inc.