Tuesday, September 13, 2011

Samsung Purchases Yet Another Existing Wind Project In Ontario

In 2011, it has become less and less clear what it is Samsung is doing in Ontario to justify preferential access to the grid, and an additional stipend beyond what other suppliers offered.
"South Korea's Samsung and Pattern Energy Group have acquired a wind power project in Ontario for an undisclosed price. The companies, which bought the project from Spain's Acciona, will increase the planned capacity of the Armow project in Kincardine, Ontario, to 180 megawatts. Construction will begin in 2013 and finish the next year."
Samsung, Pattern buy Ontario wind project | Reuters:

Pattern, a San Francisco based company (funny coincidence there as much of the money backing the allegedly Canadian Pembina Foundation is from the Foundations of elite San Francisco families), has been contracted by the Korean syndicate to acquire almost half of the 2000MW they were entitled to, and the Armow project is not the first they have acquired from another applicant, following on acquisitions of other projects now comprising the South Kent wind project.

In all Pattern Energy claims it will "develop up to 1,000 MW of wind energy projects in conjunction with an initiative launched in January 2010 by the Ontario government and two Korean firms, Samsung and Korea Electric Power Corp., to build with partners 2,000 MW of wind energy capacity and 500 MW of solar capacity in Ontario."

Both projects noted here are to incorporate Siemens turbines - and while those turbines may be put together in Ontario, it is notable Siemens closed a natural gas turbine facility in Hamilton following the preferential contract privately gifted to the Korean consortium.

It may be true that Samsung, and KEPCO, will somehow be involved with $7 billion - but it is more clear that the money will not be incremental investment in Ontario at all.  The majority of it looks like it will be bumping out existing proponents.  It is also not clear if this is an investment in generating electricity (unlikely), or an excuse to purchase land, at depressed prices due to IWT projects, as a long-term real estate play.

'via Blog this'

No comments:

Post a Comment