On Friday, Finavera Wind Energy (TSXV:FVR) received environmental approval for its 49.6-megawatt Tumbler Ridge wind project.
The $125-million project will be located eight kilometres west of Tumbler Ridge, BC. When completed, it will generate enough power to provide electricity for up about 18,000 homes.
Versant Partners analyst Massimo Fiore says this is great news for Finavera, because the approval was the the last major regulatory hurdle before construction of the project. In a research update to clients Friday, he reiterated his Speculative Buy rating on the stock and one-year target of $1.15.
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Finavera, which is headquartered in Vancouver, was actually founded in Dublin in 2003. The company is now decidedly Canadian, with four wind projects in Canada compared to just one in Ireland, a 105 MW project on that country’s west coast. Though Finavera has yet to generate any revenue from its various projects it has made some impressive strides. In February of last year, The company made a deal with GE Energy Financial Services that would see GE invest $40 million in the 77-megawatt Wildmare project that Finavera plans to build near Chetwynd, BC. Finavera says it is in talks with GE on partnering on its other wind farms, including Tumbler Ridge, the 117-megawatt Meikle, and the 60-megawatt Bullmoose project.
Fiore says the days of Finavera posting a zero to its topline are nearing an end. He expects Tumbler Ridge will contribute more than $13 million in EBITDA in its first year alone. And, he points out, the Wildmare project should receive its environmental assessment certificate from the B.C. Environmental Assessment Office in May.
Shares of Finavera closed Friday up 2.9% to $.35 cents.