Innergex Renewable Energy Inc. (Innergex Renew) has completed performance tests at the Umbata Falls hydroelectric power plant conducted by the Ontario Power Authority (OPA) requirements. The company has set the commercial operation start date as November 12, 2008. The plant has been constructed in partnership with the Ojibways of the Pic River First Nation. Power to be produced by the facility will be provided to OPA during the next 20 years, under a power purchase agreement.
Built within budget and respecting environmental protection practices, the plant has a total installed capacity of 23 megawatt (MW), provides an estimated annual power output of about 109 GWh and an EBITDA estimated at more than eight million dollars. With its 16.1% participation in the Innergex Power Income Fund, Innergex Renew now holds 95 MW of net operating installed capacity.
Michel Letellier, president and chief executive officer of Innergex Renew stated “With Umbata Falls now in commercial operation, we are meeting our business plan objectives for 2008. This also brings us an important step closer towards attaining the target of 300 MW in net operating installed capacity by 2012.”
The project is certified by EcoLogo and benefits from the ecoENERGY Initiative of the Canadian federal government to support renewable energy in Canada. The program provides a $10 per MWh incentive payment for the first ten years of operation.
Letellier also said “The ecoENERGY program supports the efforts of companies such as ours to protect the environment and is evidence of the importance of such efforts to the federal government. As such, it is an important program and we are very proud to be eligible, environmental protection being an underlying value of Innergex.”
The construction of the Umbata Falls project began in the spring of 2006. The plant is a run-of-river hydroelectric power generating facility located on the White River, a tributary to Lake Superior, around 30 km southeast of Marathon, Ontario.