CBD Energy has signed a licence agreement which allows for an evaluation period of up to two years, although CBD Energy expects to complete its evaluation well within this period.

Assuming a positive outcome from this evaluation, which CBD Energy has already commenced, the agreement allows for a subsequent development agreement and lease to establish the wind farm.

The agreement gives CBD Energy access to current wind data and other evaluation material in relation to the project.

Given the project’s estimated size, CBD Energy expects it may be classified as “critical infrastructure” as described in the New South Wales government’s August 17, 2009 announcement, which would entitle it to achieve regulatory approval within four months and for approval process fees to be waived.

If the project proceeded it would generate tradeable Renewable Energy Certificates under the Australian government’s renewable energy target legislation.

CBD Energy is in discussions with potential partners to co-development the project that is expected to cost around $140 million to construct.

This project would be CBD Energy’s second wind farm project in New South Wales, with CBD Energy currently seeking regulatory approval for a 50 MW wind farm at Shannons Flat near Cooma. This new project will take CBD Energy’s wind farm developments to 100 MW.