Local solar project changes hands, moves ahead

Now that the financing is in place, the land acquired and permits obtained for Phase 1 of its Sault solar farm, POD Generating Group has sold the project to U.S.- based Starwood Energy Group Global, LLC and is moving on to develop Phase 2.

In the latest blazing addition to the Sault's status as the "alternative energy capital of Canada," MPP David Orazietti announced that the $100 million first phase of the $300 million project was ready to go.

"Only the sun could bring together people from France, Los Angeles, New York, India, Germany with us here in Sault Ste. Marie," said Ward 1 Councillor Steve Butland, one of the people behind the city's 'alternative energy' moniker.

Two of the three new partners in the venture commented that a big part of the deal maker was the support of the Ontario government and a lucrative power generation contract that went with that support. POD Generating started the ball rolling about three years ago when POD President Glen Martin and Chief Executive Officer David Livingston came to town.

Over the past three years, POD has developed the project with support and assistance from Sault Ste. Marie Economic Development Corporation, the City of Sault Ste. Marie and the Province of Ontario.

Now that POD, essentially the sun-prospectors and community-level developers of the project, have proven the project's viability and lined up the bucks, it's been picked up by Starwood Energy Group.

Based in Greenwich, Connecticut, Starwood is a private equity investment company specializing in energy infrastructure investments.

The global company got together with Norddeutsche Landesbank Girozentrale ("Nord/LB"), a major alternative energy funding agency, to create Starwood SSM1.

Phase 1 of the project will go forward under Starwood SSM1's guidance.

Q-Cells International Canada, an affiliate of Q-Cells SE, will take over delivery of the project including operations and maintenance.

POD got its sunbeams lined up efficiently and quickly, says Starwood Chief Executive Director and Managing Director Bratford Nordholm (shown with POD Generating Group Chief Executive Officer David Livingston).

Typically, a project like this could take three or four years to get all the land acquisitions and permits in order.

POD got it done in two.

Then, there was the big credit crunch.

By the time POD was ready to begin an earnest search for funding, it was pretty much impossible to borrow $100, let alone $100 million, said Nord/LB senior director for structured finance in the Americas, Vinod Mukani.

But Nord/LB, Starwood, the City of Sault Ste. Marie and the provincial government easily recognized the merit of the project.

"After all, POD has the rocket scientist and they brought us to Sault Ste. Marie," Mukani said.

POD's rocket scientist is its president, Sault Ste. Marie-born Glen Martin, who says the Sault will get its day in the sun as soon as construction can get underway.

Mukani wouldn't say exactly how much Nord/LB is investing in the project, but he said it's a very generous amount.

Construction is expected to begin as soon as possible in the spring and the project is expected to be producing electricity by third quarter in 2010.

Both Mukani and Nordholm said they are looking forward to continuing their business relationship with Sault Ste. Marie and becoming involved with Phase 2 of the project when it's ready to go.

To learn more about what the Sault's new solar facilities will look like, visit the Q-Cells International website.