Greenbriar Capital Corp. executes agreement to acquire 80 MW wind project in Utah
TSX-V Symbol: GRB
Issued and Outstanding: 11,057,000
VANCOUVER, April 22, 2013 /PRNewswire/ - 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 electricity."
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.
SOURCE Greenbriar Capital Corp.