Oceanic Wind Energy and Ming Yang Smart Energy have signed a memorandum of understanding (MoU) to evaluate a strategic investment partnership for the development of an offshore wind project in the Hecate Strait off the northwest coast of British Columbia.
The project is being advanced by Coast Tsimshian Enterprises (CTE) and Oceanic Wind. CTE is a 50/50 partnership between the Metlakatla and Lax Kw’alaams First Nations.
According to the companies, the project has the potential to generate between 1.5 GW and 2 GW of electricity. They said the Hecate Strait wind resource is characterized by wind speeds exceeding 10 meters per second, annual capacity factors above 50% and winter capacity factors of 65%.
Under the terms of the MoU, Ming Yang intends to evaluate opportunities to provide equity investment, debt financing and strategic partnership support for the development, construction and long-term operation of the project. The companies said the size and scope of any investment will be determined during a 90-day due diligence period.
“This agreement reflects the growing international confidence in Indigenous partnerships in clean energy development in Canada.
“By working together with Ming Yang, Coast Tsimshian Enterprises, we are taking an important step toward building a globally significant offshore wind industry that creates sustainable economic opportunities while supporting British Columbia’s transition to clean energy,” said Michael O’Connor, President and CEO of Oceanic Wind Energy.
The companies said Ming Yang, a supplier of renewable energy technologies and offshore wind systems, has expressed interest in supporting the project through potential capital investment as well as technical, construction and operational expertise.
The parties noted that the MOU is non-binding.
Separately, Oceanic Wind said it has retained Falkirk Environmental Consultants to begin work on the environmental approvals process for the project, including preparation and submission of the Initial Project Description required for regulatory review.
Oceanic Wind is a Canadian renewable energy developer focused on offshore wind opportunities in British Columbia, while Ming Yang develops and manufactures offshore and onshore wind turbines, energy storage systems and other energy technologies.