TORONTO (Reuters) - 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.
“We were attracted to the Armow project for its strong wind resource, support from the municipality and friendly landowners,” said Pattern Chief Executive Mike Garland in the release.
For South Korea’s Samsung, the project, located about 200 kilometers (125 miles) northwest of Toronto, is part of a major investment in Ontario’s renewable energy sector.
In January, Samsung C&T signed an agreement with the provincial government to lead a consortium investing C$7 billion in wind and solar in the province.
The consortium will build four wind and solar clusters with combined capacity of 2,500 megawatts by 2016.
Under the agreement, the province promised C$437 million in incentives. But the Liberal government is in the midst of a tough election campaign, and its Conservative opponents have pledged to scrap the deal. [nN1E7881CE]
The Conservatives have also said that if elected they would cancel the province’s feed-in-tariff, which sets above-market rates for renewable energy produced using locally-made equipment.
The most comprehensive green energy subsidy in North America, it is meant to shift the province to renewable sources so it can close all of its coal-fired power stations by 2014.
Reporting by Allison Martell