Ontario announced the signing of a $7 billion deal (the "Agreement") with a South Korean consortium, comprised of Samsung C&T Corporation and the Korea Power Electric Corporation, which will triple Ontario's renewable wind and solar energy generation and lead to manufacturing facilities being constructed in Ontario over the long term.
In a Nutshell
The Agreement calls for the consortium to build manufacturing facilities in the years ahead that will produce wind turbine towers, wind blades, solar inverters and solar assembly in Ontario. As well, the Consortium is committed to the construction of 2,500 megawatts (MW) of (mostly wind) renewable energy generation; 2,000 MW of wind power and 500 MW of solar.
Focused primarily on the generation of electricity from wind, construction is expected to occur in five phases, commencing in 2012. The first phase of the project is scheduled to be completed in 38 months. It will be a 500MW cluster (400MW of wind and 100MW of solar) that will be built in Southern Ontario. The government has offered the consortium special incentives: In addition to the standard rates for electricity generation, the Consortium will be eligible for an economic development adder (EDA). This adder is contingent upon the Consortium manufacturing partners operating four manufacturing plants according to a schedule that runs from 2013 to 2015.
AWSL notes that this nearly $7 billion deal creates one of the world's largest renewable energy projects and places Ontario at the cutting edge of the world's massive paradigm shift toward green energy, vindicating Atlantic Wind and Solar's decision last year to focus on the tremendous opportunities in Ontario for its near term growth in the dynamic renewable energy industry.
This Agreement is seen as having very positive implications for AWSL and the outlook for acceptance and growth of renewable energy in Ontario. The long term nature of the "Agreement" program, with its energy production and manufacturing components expected to be phased in over a three-year period not beginning until 2013, is seen as having, in terms of competition, absolutely no negative effects on Atlantic Wind and Solar and the other aggressive, entrepreneurial-led companies striving to bring economical, green renewable energy to Ontario. On the contrary, it is seen as a Win-Win scenario for Atlantic Wind and Solar Inc.
The Promise of Technology
Atlantic Wind and Solar believes that this landmark Agreement will not in any way delay the emergence of leading edge, more efficient technologies in generating electrical energy from renewable wind and solar power since, after all, economic advantage through a more efficient "mousetrap" always wins the day. AWSL and its affiliate Hybridyne have introduced proprietary conversion/inversion technology (CIT) that it fully expects will play a growing role in the development and proliferation of renewable energy systems in the years ahead. In that regard, the planned acceleration of wind & solar use in Ontario through the Ontario-South Korean consortium potentially represents a major new customer for AWSL's advanced technology.
If the consortium achieves its goal of 2,500 MW from renewable sources in five years, this would represent about 25% of the more than 10,000 MW of electrical energy generated by renewable sources that the Ontario Government hopes to ultimately purchase. To illustrate just how large the Ontario market requirement is, consider that 10,000 MW is the equivalent of 40,000 of AWSL's rooftop solar energy parks of 50,000s/f and 250kw each.
"As with most multibillion dollar government contracts, and in light of media articles since the announcement, there are no doubt numerous wrinkles, political and otherwise, that must be ironed out to the satisfaction of all concerned parties before, and during, the project's implementation. Meanwhile, AWSL will, at an accelerated rate, continue to market and install its environmentally friendly and profitable rooftop solar energy parks on roof tops throughout Ontario." -- Atlantic Wind and Solar I.R Director, Mr. Brent O'Connor
AWSL... Poised for Growth
The acceleration of orders, financing, and other developments in the last few months of 2009 augurs well for Atlantic Wind and Solar's business and overall growth as we enter 2010. The Company intends to further expand in 2010 through strategically targeted acquisitions. The Company is in advanced discussions regarding a new global distribution network focused on both the American and European markets.
In addition to progressing on current project installations and completions, AWSL is planning to continue the aggressive growth of its Ontario Solar Rooftop Division by securing another 100 x 50,000s/f rooftops in Ontario by the end of 2010, and another 200 in 2011, with the intention of generating in excess of 75 megawatts of solar power to be sold into the grid by 2012. Atlantic Wind and Solar Inc. is also involved in discussions regarding additional technologies and prospective agreements aimed at broadening the Company's exposure to growth in the multibillion dollar Renewable Energy industry, both at home and abroad.
Sales and Marketing Contacts
Property owners and managers with unobstructed commercial rooftops of 30,000 s/f or bigger in the province of Ontario, Canada, and which they are interested in possibly leasing to AWSL, are invited to contact Mr. Charles Mazzacato +1 800 891 1657 x230. All other Renewable Energy sales enquiries are asked to contact Mr. Gilles Trahan +1 800 891 1657 x221.
For further corporate information and/or to subscribe for regular news updates from Atlantic Wind & Solar, please visit atlanticwindandsolar.com/.
Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.