NaiKun and Haida Nation partner for offshore wind project

British Columbia-based renewable energy company NaiKun Wind Energy Group and the Council of the Haida Nation have formed a partnership to support the development of Canada's first offshore wind energy project.

The NaiKun project is located in British Columbia's Hecate Strait, between the mainland and the Haida Gwaii, also known as the Queen Charlotte Islands. The area is the traditional territory of the Haida, the indigenous people of the area.

The partnership will be a commercial limited partnership that will operate and maintain the NaiKun wind energy project after construction. The agreement provides benefits to the Haida Nation from the project, including revenue sharing, environmental stewardship and employment and economic development opportunities.

The agreement formalizes the relationship between the Haida Nation and NaiKun, and builds on a memorandum of understanding signed in May 2007. The Haida Nation and NaiKun subsidiary NaiKun Wind Operating Inc. will participate equally in the partnership in terms of ownership and economic value.

"The Haida people support development that brings benefits of all kinds - individual, commercial and environmental - to Haida Gwaii and to the Haida Nation," said Guujaaw, president of the Haida Nation. "We fully believe that, subject to confirmation of environmental feasibility, this offshore project will bring significant long-term benefits to the Haida Nation. For these reasons we are proud to be participants in the project."

NaiKun Chairman Michael C. Burns said, "This agreement is the result of many years of working together and it reflects the commitment from both partners to move this project forward. NaiKun will gain from the knowledge and insight of the Haida and welcomes the thoughtful support of the Nation and its leaders."

Construction on the project is expected to begin in 2012. The project could have up to 110 turbines, installed off the east coast of Haida Gwaii. Energy generated from the turbines will be collected at an offshore substation in the center of the project and converted into electricity, which will be transmitted to the mainland by a subsea cable.

The project is contingent upon receipt of environmental approvals from the Haida Nation and through the harmonized federal/provincial environmental assessment process, and the award of an Electricity Purchase Agreement from BC Hydro.