Ann: Renewable Energy Project , page-2

Another good development project for CBD. Hopefully things will start to happen for them soon.


16 December 2008
ASX & MEDIA RELEASE
CBD WINS RENEWABLE ENERGY PROJECT ON CHATHAM ISLANDS
Integrated energy solutions company, CBD Energy, has won a competitive tender for
a renewable energy project on the Chatham Islands, located 800 km east of
Christchurch.
CBD has recently been advised by the Chatham Islands Enterprise Trust (CIET) that
its Chatham Islands Wind Energy Proposal has the support of the New Zealand
Ministry of Economic Development and its advisers.
CBD and CIET are now finalising commercial arrangements, with the intention of
commencing the project in early 2009 which would lead to completion around mid-
2010.
It is to be supported by an agreement for CBD to build, own and operate the wind
energy project which will have a power purchase agreement from CIET.
After a 20 year operating period, the project will transfer to CIET as owner.
The project is an example of CBD combining its energy solutions and engineering
skills to bring cost effective renewable energy to a remote location.
CBD sees the Chatham Islands project as well as its other remote area renewable
energy project on King Island in Bass Strait as forerunners to possible new projects
with other Pacific Islands.
According to CBD Managing Director, Mr Gerry McGowan, the Chatham Islands
project showed how good engineering and grid management systems could combine
to deliver cost effective renewable solutions in a remote area.
“The Chatham Islands is the first inhabited land to greet the dawn each day and it’s a
sound message for the planet that a new day begins with renewable energy making
a difference to an island economy,” Mr McGowan said.
Design work for the Chatham Islands project has already commenced and project
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completion is expected towards the end of 2009.
CBD will be contracted to manage and maintain the new electricity system and will
receive cash flow from owning the system until transfer to CIET 20 years after
completion.
The remote Chatham Islands currently rely on diesel for electricity generation,
resulting in a cost of electricity some 10 times higher than on mainland New Zealand.
CBD’s project involves installing two 200 kW wind turbines to reduce reliance on
diesel as well as installing a control and grid management system to boost use of
wind energy.
The turbines would be constructed and installed on the main island with the
assistance of the local work force.
The project will achieve greenhouse gas reductions for the Chatham Islands and is
the cornerstone of the islands’ clean and green branding strategy for its produce
aimed at delivering higher value export income.
The Chatham Islands aim to move gradually towards becoming totally reliant on
renewable energy, leading to possible additional stages for the CBD project.
The high price of electricity on the Chatham Islands has been a barrier for the local
economy and CIET sees cheaper renewable energy as a route to expanding industry
and attracting a higher population.
Expansion of the energy system would lead to increasing revenue for CBD as owner
and operator of the system.