Samsung to Develop 200-Turbine Windfarm in Ontario

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Researched by Industrial Info Resources (Sugar Land, Texas)--Samsung C&T Corporation (Seoul, South Korea) is in talks with the government of Ontario to set up a windfarm on a 25-kilometer stretch of the northern shoreline of Lake Erie. Samsung is planning to install about 200 turbines in the area. The deal is likely to involve billions of dollars in investments, including the development of associated manufacturing facilities in Ontario.

About a quarter of the proposed turbines will be installed in the forests and scrubland located in the vicinity of Dunnville, which belongs to the local league of indigenous people, the Six Nations. The league comprises members of Mohawk, Oneida, Onondaga, Cayuga, Seneca and Tuscarora nations, or Indian tribes.

The Six Nations are seeking more than meager royalties of 1% to 2% from the venture. Having gained a reputation in steel installation and associated services in addition to operating a steel fabrication facility, the Six Nations are looking to participate in the venture by being involved in tasks such as the assembling of electronic units and the upkeep of turbines and towers.

Located between Nanticoke and Port Maitland, the potential windfarm site is reported to be ideal for wind energy ventures. Samsung has planned a pilot exercise to gauge the economic feasibility of the venture, which involves installing six 80-meter towers to measure critical wind parameters.

Despite the sensitivity of the deal, initial details have been prematurely disclosed to the public. However, the government of Ontario has said that further details would be made available only after finalizing a framework agreement for cooperation.

Canada recently passed a Green Energy and Economy Act to promote renewable energy ventures in the country. The government also has enforced the usage of 25% local resources for three years henceforth. The Green Energy Act offers a feed-in tariff scheme, through which project developers stand to earn about US12.63 cents for each kilowatt-hour (kWh) of power generated in the case of onshore projects and US17.75 cents per kWh of power generated from offshore projects. The incentive is double the present electricity cost in the region.

Samsung, which diversified into wind turbine production early this year, has plans to produce 2.5-MW and 5-MW turbine variants. The products are likely to be released to the global market by 2010. The company already has an advance order for three 2.5-MW turbines from Cielo Wind Power LLC (Austin, Texas).

According to company sources, the value of the wind turbine market is expected reach $74 billion over the next decade.

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