Plutonic Power Corp. and consulting engineering firm Knight Piesold Ltd. have agreed to extend a business relationship responsible for identifying the 40 hydroelectric projects in Plutonic’s 2,000-MW Green Power Corridor in British Columbia.
Under an agreement announced May 14, Plutonic and Knight Piesold will continue their partnership for identifying and evaluating potential run-of-river sites into 2014. The agreement provides Plutonic with a right of first refusal to acquire new projects identified by Knight Piesold. It also includes a standard non-compete clause.
The agreement provides for the issuance of 100,000 common share purchase warrants to Knight Piesold, which can be exercised at the price of C$7.93 (US$7.92) per share for a period of two years, and a bonus structure if identified projects become commercially viable. Knight Piesold also is entitled to payment of its fees for services provided.
Plutonic Chief Executive Officer Donald McInnes noted Plutonic and Knight Piesold have been involved in a mutually beneficial relationship since 2003. (HNN 6/27/07)
The Green Power Corridor includes the C$660 million (US$659 million) 123-MW East Toba River and 73-MW Montrose Creek project, now under construction. Once fully developed, corridor projects could generate energy to meet the needs of about 630,000 homes and offset 4 million tons of carbon dioxide missions annually, Plutonic said. (HNN 4/2/08)