PG&E and Finavera Renewables Announce Nation's First Commercial Wave
Energy Power Purchase Agreement
Utility to Add Two Megawatts of Clean, Renewable Wave Energy to its
Power Mix
SAN FRANCISCO, CALIFORNIA--(Marketwire - December 18, 2007) - Pacific
Gas and Electric Company today announced that it has entered into a
long-term, two megawatt (MW) commercial wave energy power purchasing
agreement (PPA) with Finavera Renewables Inc. ('Finavera Renewables')
(TSX VENTURE: FVR). Located off the Northern California coast, the
Humboldt County Offshore Wave Energy Power Plant will be developed by
Finavera Renewables. The project is expected to begin delivering
renewable, clean electricity in 2012.
"Harnessing the ocean's energy on a utility scale is a critical
achievement in renewable energy technology and this project
represents our first step in that direction," said Fong Wan, vice
president of Energy Procurement, PG&E. "Wave energy, along with solar
thermal energy and biogas generated from cow manure, are examples of
the innovative and promising sources of non-polluting, renewable
energy PG&E is pursuing as part of our commitment to combat climate
change."
Finavera Renewables has initiated development plans for the two
megawatt wave energy project to be constructed approximately 2.5
miles off the coast of Humboldt County, California for electricity
delivery to PG&E's customers throughout its northern and central
California service territory. The power purchase agreement calls for
3,854 MWh of clean, renewable electricity to be delivered annually to
PG&E over the term of the contract. The project is expected to offset
greenhouse gas emissions by displacing an estimated 245 tons of
carbon dioxide (CO2) annually.
"This power purchase agreement with PG&E represents a major
accomplishment for Finavera Renewables and the development of
commercial wave energy power projects. It is our intent to build wave
energy power plants globally that deliver clean, renewable
electricity to homes and deliver value to our shareholders. This
power purchase agreement is a significant step in reaching both of
those milestones," said Finavera Renewables CEO, Jason Bak. "This is
a huge step forward for offshore wave energy."
During the next two to three years of the permitting process, the
overall project design and detailed specifications will be submitted
to and evaluated by local, state, and federal regulators and
community stakeholders including fishermen, recreational boaters and
environmental groups to understand the siting, safety and
environmental impacts of the wave energy plant. The licensing process
will include all required environmental studies such as impacts on
local fish habitat, marine mammal migration routes, and commercial
and recreational fishing zones.
Renewable Wave Energy Technology
Finavera Renewables' planned offshore power projects consist of
patented wave energy converters that are based on proven, marine buoy
technology. Clusters of these modular devices called AquaBuOYs will
be moored several kilometers offshore where the wave resource is the
greatest. The wave power projects are scalable from hundreds of
kilowatts to hundreds of megawatts and are designed to provide clean,
renewable energy for large population centers.
Energy transfer takes place by converting the vertical component of
wave kinetic energy into pressurized seawater by means of two-stroke
hose pumps. The pressurized seawater is directed into an energy
conversion system consisting of a turbine driving an electrical
generator. The power is transmitted to shore by means of a secure,
undersea transmission line.
A cluster of AquaBuOYs would have a low silhouette in the water.
Located several miles offshore, the wave power project arrays would
be visible to allow for safe navigation and no more noticeable than a
small fleet of fishing boats. To view video of the AquaBuOY 2.0
prototype and an animation showing the technology please visit the
Finavera Renewables website: www.finavera.com.
Additional
In addition to PG&E's agreement with Finavera Renewables, PG&E
independently filed permit applications with the Federal Energy
Regulatory Commission in February 2007 to develop generation projects
that could convert the abundant wave energy off the coast of
Mendocino and Humboldt Counties into electricity. Named
"WaveConnect", these projects are currently undergoing initial
resource, environmental, and ocean use assessments. If developed, the
WaveConnect projects would use wave energy conversion (WEC) devices
to transform the energy of ocean waves into clean, renewable
electricity. PG&E submitted the first application in North America
for a project that will allow multiple WEC device manufacturers to
demonstrate their devices on a common site, which could help
accelerate the development of wave energy technology.
The agreement filed today with the California Public Utilities
Commission is the latest example of PG&E's commitment to aggressively
add renewable energy to its power mix. PG&E recently added 177 MW of
solar thermal power and 150 MW of wind power and is seeking
regulatory approval of these purchasing agreements.
PG&E currently supplies 12 percent of its energy from qualifying
renewable sources under California's Renewable Portfolio Standard
(RPS) program. PG&E continues to add renewable electric power
resources to its supply and is on target to exceed 20 percent under
contract or delivered by 2010. On average, more than 50 percent of
the energy PG&E delivers to its customers comes from generating
sources that emit no carbon dioxide, providing among the cleanest
energy in the nation.
California's RPS Program requires each utility to increase its
procurement of eligible renewable generating resources by one percent
of load per year to achieve a 20 percent renewables goal by 2010. The
RPS Program was passed by the Legislature and is managed by
California's Public Utilities Commission and Energy Commission.
About Finavera Renewables Inc.
Finavera Renewables Inc. is dedicated to the development of renewable
energy resources and technologies. The Company's objective is to
become a major renewable and green energy producer by developing and
operating its assets in the wind and wave energy sectors. Finavera
Renewables Inc. is developing the licensed and patented 'AquaBuOY'
wave energy technology, a device that is based on proven and
sustainable buoy technology. The Company is also developing wave
energy projects for AquaBuOY use in the United States, Canada, and
South Africa. The project in South Africa is the result of a
commitment made by CEO Jason Bak to the Clinton Global Initiative.
The Company is also developing wind energy projects in Canada and
Ireland. In Canada, a two stage 150 MW project is being developed in
Alberta. Construction on this advance stage project is estimated to
begin in 2008 and provides for near term revenue. In British
Columbia, four projects totaling 366 MW have been entered into the
provincial Environmental Assessment process, and several other sites
are being developed. In Ireland, two pre-construction wind projects
are under development with a potential capacity of 175 MW. Data
collection and environmental studies have been continuing at a number
of sites in both countries.
For more information about Pacific Gas and Electric Company, please
visit the company's website at www.pge.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any securities in the United States.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available. Statements in this
news release, other than purely historical information, including
statements relating to the Company's future plans, objectives or
expected results, constitute Forward-looking statements. Such
statements represent management's conclusion based on numerous
assumptions and are subject to all the risks and uncertainties
inherent in the Company's business, including development risks.
Further information concerning such risks is set forth in the
Company's formal disclosure documents filed on SEDAR, including its
MD&A. Consequently, actual results may vary materially from those
described in the Forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts:
Pacific Gas and Electric Company
PG&E News Department
(415) 973-5930
Website: www.pge.com
Finavera Renewables Inc.
VP Policy & Public Relations
Myke Clark
Email: mclark@finavera.com
Website: www.finavera.com
Weber Shandwick
Jai Ferguson
Email: jferguson@webershandwick.com
