(BRK.A), (BRK.B)
BHE Canada has signed a contract with Siemens Gamesa Renewable Energy to provide 26 5.0 megawatt wind turbines for the proposed Rattlesnake Ridge Wind Power Project in southeast Alberta.
“Siemens Gamesa has extensive experience in Canada’s renewable energy industry, and this project takes the company’s total fleet to 3.5 gigawatts of installed energy capacity in the country,” said William Christensen, Vice President Corporate Development of BHE Canada.
The wind project and the associated transmission connection was approved by the Alberta Utilities Commission (AUC) on September 9, 2020. On November 16, 2020, BHE Canada filed for an amendment with the AUC to incorporate the use of the SGRE turbines.
The Rattlesnake Ridge Wind Power Project is being privately financed by BHE Canada through a combination of equity and debt and requires no government subsidies or tax incentives to support its operation.
The project is expected to provide approximately 150 jobs at peak construction during the approximately 18-month schedule. Construction activities are ongoing, with almost $12 million already invested in local Alberta contractors and suppliers. Total investment in the County of Forty Mile is expected to be approximately $56 million.
In addition to energy, the project will bring local landowner royalties boosting rural incomes and re-invested by landowners in their farms and their communities. There will be substantial increased tax revenue to the County, potentially reducing the tax assessment across the entire County. Preliminary estimates for tax revenue are in the $1 million to $2 million range per year.
BHE Canada has signed a long-term power purchase agreement with a large Canadian corporate partner for approximately two-thirds of the energy output from the Rattlesnake Ridge Wind project. BHE Canada continues to negotiate with potential partners for the remaining one-third. The more than $200 million project is scheduled to be in service in early 2022.
© 2020 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.