Canada's Atlantic Power plans U.S. renewables push
BANGALORE (Reuters) - Canada's Atlantic Power Corp would expand its renewable energy business in the United States, tapping into the incentives and tax credits the government has offered, its chief executive said.
The company, which holds stakes in 15 electricity plants in major U.S. power markets, is looking to set up small-sized wind power and biomass projects in the country, CEO Barry Welch said by phone.
Earlier this year, the U.S. government extended tax credits and financial incentives to boost alternative energy supplies as part of the Obama administration's U.S. economic recovery plan.
The government also extended the tax credit for producing electricity from wind for three years through 2012 and for electricity generated by biomass and other renewable sources through 2013.
Atlantic Power is currently involved in a feasibility study for five 50-megawatt biomass power plants with biomass power plants developer Rollcast Energy. Atlantic Power owns 40 percent of Rollcast.
"In addition to these five potential projects, we are also involved in a project in New York, called Onondaga. We are attempting to convert from natural gas co-generation to biomass," the CEO said.
The power utility expects the new plants to add about 290 MW to its total production.
NEW CONTRACTS
Atlantic Power, which supplies electricity mostly through long-term contracts, is negotiating for new power supply contracts for its Auburndale and Lake projects in Florida.
The company has identified some existing customers of its Pasco plant in Florida who could buy power from Auburndale and Lake projects in 2014, CEO Welch said.
"We had preliminary discussions with those power buyers and it is clear that they have needs for power for that timeframe in 2014," Welch said, adding that the existing contracts for the two plants finish at the end of 2013.
Units of the Vancouver, British Columbia-based company were down 6 Canadian cents at C$8.74 in afternoon trade Tuesday on the Toronto Stock Exchange. They hit a 52-week high of C$9.45 on May 19.
(Editing by Ratul Ray Chaudhuri)
