Greenbriar Capital Corp. executes agreement to acquire 80 MW wind project in
VANCOUVER, April 22, 2013
VANCOUVER, April 22, 2013 /PRNewswire/ --
TSX-V Symbol: GRB Issued and Outstanding: 11,057,000
Greenbriar Capital Corp. (the "Company" or "Greenbriar", symbol GRB on the
Toronto Venture Exchange or symbol GEBRF on the US OTC markets), today
announces the execution of a Letter Agreement with an arm's length third
party, to acquire an undivided 100% interest in and to an 80 MW wind project
located in Utah.
The acquisition will comprise permits and permit applications, biological and
environmental studies, reports and data, engineering, design, geo-tech,
technical studies, transmission and interconnection facility studies,
agreements and applications, on site wind data and met towers, all applicable
consents and approvals for the project, wind energy land leases, and the
nearly completed power purchase agreement for 80 MW.
Greenbriar will commence the completion of the land entitlement process,
invest in the real property, engage project lenders and place Requests For
Proposals for the EPC Balance of Plant and turbine vendors.
The agreement is subject to final definitive agreements being executed however
the agreement does contain some binding provisions. Greenbriar will not issue
any shares to acquire or fund this acquisition, but will rely on internal cash
flows from already contracted real estate sales and the terms of this
acquisition is confidential.
On a related matter on April 15, 2013 the US Internal Revenue Service ("IRS")
published rules on what developers must do to start construction before the
end of 2013 and qualify their renewable projects for either the 30% investment
tax credit on total project capital expenditures or receive the production tax
credit for 10 years on electricity output. The IRS stated there is no deadline
to complete projects that start construction this year.
There are two ways to show that a project is under construction in time. One
is showing that "physical work of a significant nature" commenced at the site
or by showing the developer "incurred" at least 5% of the total project cost
by year-end. Greenbriar is committed to incurring 5% of total project cost by
year-end. The IRS guidance is in notice 2013-29.
Once more, the US Congress and Administration has delivered in its promise to
support renewable energy. These incentives in effect provide Greenbriar about
30% of the total funding needed to meet the project capital structure. This
30% amounts to the normal equity contribution and substantial dilution one
gets to avoid by building renewable projects inside the US. Greenbriar
applauds the US Congress and Administration for their responsible and
visionary approach. Even though the renewable industry is extremely grateful
for these incentives, it is important to note that these renewable incentives
are only a very minute fraction of the trillions of dollars of subsidy the
fossil fuel industry has received over the last four decades.
Jeff Ciachurski, CEO of Greenbriar Capital states: "We are pleased to be
involved with helping Utah achieve energy independence and providing the Utah
rate-payers with clean, reliable, and affordable 100% carbon free
ON BEHALF OF THE BOARD OF DIRECTORS
Jeffrey J. Ciachurski President, Chief Executive Officer and Director
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
For further information:
Jeff Ciachurski at +1-604-839-4192 Email:
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