Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

September 28, 2009 08:00 ET

Canadian Hydro Acquires World's Largest Offshore Wind Prospect

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2009) - Canadian Hydro Developers, Inc. ("Canadian Hydro" or the "Company") (TSX:KHD) has entered into a definitive agreement to acquire the rights to a 4,400 MW offshore wind prospect ("Offshore Wind Prospect") in Ontario from Wasatch Wind, Inc., a private U.S.-based renewable energy company. When completed, this facility would be the largest offshore operation in the world, supplying enough renewable energy to power over two million homes. The agreement is subject to customary due diligence and the terms are confidential.

The Offshore Wind Prospect is located approximately five to 30 kilometres offshore in one of the Great Lakes bordering Ontario, near available transmission interconnection. It has an estimated net capacity factor of 40 per cent. The Offshore Wind Prospect is eligible for the Ontario Green Energy Act's Feed-In-Tariff 20-year contract at a price of $190 per MWh, subject to 100 per cent of Ontario consumer price index ("CPI") inflation from contract signing to commercial operations and 20 per cent of Ontario CPI annually thereafter. Canadian Hydro anticipates that the Offshore Wind Prospect will be built in stages, with the first 400 to 500 MW to come online by the fourth quarter of 2014. Regulatory and environmental permits and approvals, site release from the Ontario Ministry of Natural Resources, and financing are required prior to proceeding with construction.

"This is a tremendous growth opportunity for our company and our shareholders, and a perfect fit with our long-term strategy and position as a market leader in Canada. We expect the Offshore Wind Prospect to give Canadian Hydro years of strong, double-digit growth and to provide our shareholders with attractive returns," said Kent Brown, Chief Executive Officer. "Canadian Hydro already owns and operates the two largest wind facilities in Canada. We are leading the way in Ontario by generating 40 per cent of the province's installed renewable energy capacity, and we are eager to pioneer offshore wind in Ontario and North America."

About Canadian Hydro

"Recognized as one of Jantzi/Maclean's Top 50 Responsible Corporations in Canada"

Canadian Hydro is committed to Building a Sustainable Future®. The Company is the largest and most diversified developer, owner, and operator of 21 renewable energy generation facilities in Canada totaling net 694 MW of capacity in operation, 160 MW in and nearing construction, and 6,060 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of Alberta, British Columbia, Ontario, and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogoM Program.

About Wasatch Wind, Inc.

Wasatch Wind is an established wind project developer based in Park City, Utah, with activities throughout the U.S. Intermountain West and Ontario, Canada. For more information, visit www.wasatchwind.com.

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws.

The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such risks, uncertainties and factors include, among others: the ability of Canadian Hydro to raise capital on acceptable terms and continue with its power generation projects; Canadian Hydro's ability to obtain qualified staff and equipment in a timely and cost-effective manner; increases and over-runs in cost of construction for Canadian Hydro's projects, maintaining the construction schedule and planned start-up dates; the need to obtain required approvals and permits from regulatory authorities; the liabilities and risks inherent in the power-generation industry; the volatility of power prices; the possibility of claims of aboriginal title or treaty rights; failure to obtain third-party consents or approvals when required; changes in government legislation and regulation; the uncertainties associated with the current takeover proposal by TransAlta Corporation; and general economic conditions.

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revised them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

Contact Information