Solar energy project beams forward

NEWS RELEASES

DAVID ORAZIETTI, MPP

STARWOOD ENERGY GROUP GLOBAL

****************************** Orazietti announces $100 million first phase of solar energy project

McGuinty government’s renewable energy program improving environment and creating jobs

SAULT STE. MARIE - David Orazietti, MPP was joined today by representatives from Starwood Energy, POD Generating Group and other financial partners to announce that financing and land acquisitions are now in place to move forward with the 20 MW first phase of a solar energy project in Sault Ste. Marie through the McGuinty government’s renewable energy program.

“Today we are moving forward with another exciting renewable energy project that will see one of the largest solar farms to be built in Canada, being constructed in our city, through the support of our government’s innovative energy programs,” said Orazietti. “In addition to the Brookfield Renewable Power wind farm and the Essar Steel Algoma co-generation plant, our government continues to help create new jobs, diversify our local economy and build the electricity system Ontarians need.”

The approximately $100 million project, which will consist of two 10 MW solar photovoltaic projects on Base Line Road and Carpin Beach Road, is contracted under the provincial government’s Renewable Energy Standard Offer program (RESOP).

The project represents the first phase of a $300 million, 60 MW solar project to be built in Sault Ste. Marie.

Starwood Energy is financing the initiative after acquiring the project from Pod Generating Group.

“We are excited about making our first investment in Ontario and look forward to working closely with the local communities to finish this exciting project," said Bradford Nordholm, CEO of Starwood Energy. "We are focused on making investments in renewable energy and are looking forward to making further investments in solar projects in Ontario and in North America, working with local developers.”

For each of the two new 10 MW solar facilities, Pod was awarded a 20-year power purchase agreement under RESOP.

Local jobs will be created in engineering, construction and ongoing management, operations and maintenance of the new solar facilities, which are scheduled to be operational by August of 2010.

Engineering and site work for the remaining 40 MW portion of the project is expected to be finalized by the end of Spring 2010.

“We continue to be impressed by Ontario’s commitment to develop clean, renewable power generation,” David Livingston, CEO of Pod Generating Group. “The solar power facilities that we are putting into Sault Ste. Marie are showing what a dedicated group of individuals can do to meet the environmental challenges facing Canada and the world.”

The 20 MW project, once built, will provide power for up to 8,000 Ontario homes.

The facilities will also reduce yearly carbon emissions by an amount equal to displacing 3,800 cars and light trucks each driving 12,000 miles per year or to planting more than 16 million trees in Ontario's forests.

“Pod Generating Group is excited to be implementing the vision of the Ontario government to create a province-wide renewable power generation network and establish the Province of Ontario as the greenest economy in North America,” said Glen Martin, president and chief operating officer of Pod Generating Group. “Given the level of support we have received from the local stakeholders in Sault Ste. Marie, we are sure that this municipality will maintain its leadership role in the design, manufacture, and production of alternative energy.”

Other McGuinty government investments to support green technology and environmental initiatives in Sault Ste. Marie and Algoma include:

- Power purchase agreement to facilitate $400 million investment by Brookfield Renewable Power - largest wind farm in Ontario

- Power purchase agreement to facilitate $135 million capital investment by Essar Steel in 70 MW co-gen plant - eliminating 400 tons of Nitrous Oxide

- Over $7 million to green Sault Ste. Marie schools including energy retrofits

- $5 million in provincial gas tax funding has reduced air emissions through increased public transportation ridership

- $3 million to Sault Ste. Marie and Region Conservation Authority for water protection

- $2 million for tire recycling project in Sault Ste. Marie

- $1.4 million to construct methane collection system at landfill to reduce greenhouse gases

- $135,000 to support SITTM Technologies biofuel project

- Certificate of Approval for Elementa’s innovative waste-to-energy project

****************************** Starwood Energy announces close of financing for a 20 megawatt solar power generation project in Sault Ste. Marie

GREENWICH, CONNECTICUT - Starwood Energy Group Global, LLC ("Starwood Energy"), a private investment firm focused on energy infrastructure projects, today announced that its affiliate, Starwood SSM1 Canada Incorporated ("Starwood SSM1") has completed agreements to finance and construct a 20 megawatt (MW) solar photovoltaic project in the City of Sault Ste. Marie, Ontario.

The project, which will consist of two 10 MW solar photovoltaic power generation projects, is contracted under the Renewable Energy Standard Offer program developed and overseen by the Ontario Power Authority ("OPA") and will connect to local utility PUC Distribution, Inc.

The project, when complete, will be among the largest completed in North America.

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