NaiKun Wind Energy Group - Offshore Windpark in CA

http://www.contactfinancial.com/lib/pdf/marketwatch/2009-01-19%20nkw.pdf

Bericht vom 19.01.09

Wind power may be alternative energy in North America but in  Europe it is entirely mainstream – Denmark relies on wind for some 20% of its  electricity, Spain for around 10% and Germany for 6%.  Naysayers are behind the  times; the wind industry is real and growing, relying on highly proven  technology (there are tens of thousands of wind turbines operating worldwide)  and strong public support.

NaiKun Wind Energy Group Inc. (NKW) is well on its way to developing Canada’s  first offshore wind farm.  Its facility will stand in about 10 metres of water  some 8 kilometres off the eastern shore of Haida Gwaii (the Queen Charlotte  Islands) in northwestern B.C. The project is ambitious but the team behind it is  blue-chip to the core and the wind they plan to harness is amongst the best on  the planet.

How good?  NaiKun’s wind is Class 7, the highest rating on the global wind  measurement scale.  This is why wind energy developers are increasingly going  offshore, where the wind (it’s called planar wind) is far stronger and more  consistent than that onshore, which suffers power-draining turbulence from  trees, mountains and other obstructions.

In November 2008, NaiKun submitted its 396MW (enough for 130,000 homes) Phase  1 proposal into BC Hydro’s Clean Power Call, a process designed to award  contracts to the best green energy projects in the province.  Contracts will be  announced in June of this year and NaiKun is highly confident of being amongst  the recipients…with good reason.

On the BC Hydro wish list:

1. Large, scalable projects: a perfect  description for NaiKun,
2. Counter-seasonality: NaiKun’s peak  generation occurs in fall/winter when B.C.’s power needs are highest;  hydro-based assets, on the other hand, peak in summer when power needs are  lowest,
3. First Nations benefits: the Haida and  Tsimshian First Nations are directly involved through subsidiary ownership and  other roles,
4. Geographic diversity: NaiKun is in a  different region than all other B.C. wind and will not compete with any other  projects for access to local transmission capacity,
5. Credibility: NaiKun management comes  from the energy and construction industries (BC Hydro, TransAlta, Constellation,  SNC-Lavalin); German industrial powerhouse Siemens is expected to supply and  install the turbines and transmission system; NaiKun’s strategic partner for  Phase 1 is ENMAX Corp., the highly respected company that supplies most of  Alberta’s electricity.

In 2009, NaiKun enters a home stretch of sorts.  It applies for environmental  approval in February, contract awards occur between April and June,  environmental approval should arrive in Q4, and initial construction begins in  2011.  Importantly, the corporate structure averts dilution to the NaiKun share  base, as all project financing goes into the Generation Company subsidiary that  will own and operate the wind farm.

NaiKun trades in the $0.45-$0.55 range,  and as per-share cash stands well above that level, the market is assigning  negative value to the company’s virtually incomparable development pipeline. For  an investor who believes in the project and the rock-solid management/directors  team behind it (a team, by the way, that has purchased well over a million  shares in the open market since October), NaiKun would seem to offer excellent  value.

Quelle: cxa.marketwatch.com/TSX/en/Market/article.aspx

Haida Nation and NaiKun Form Landmark Partnership; Agreement a Milestone for Canada's First Offshore Wind Project

 8:30 AM ET, January 29, 2009

VANCOUVER, BRITISH COLUMBIA, Jan 29, 2009 (Marketwire via COMTEX) -- NaiKun Wind Energy Group Inc. ("NaiKun") (NKW) and the Council of the Haida Nation are pleased to announce the formation of an historic partnership in support of the development of Canada's first offshore wind energy project.

The NaiKun project is located in the traditional territory of the Haida Nation, in British Columbia's Hecate Strait, between Haida Gwaii (the Queen Charlotte Islands) and the mainland.

The partnership will be a commercial limited partnership which will operate and maintain the NaiKun wind energy project after construction. The comprehensive limited partnership agreement provides for maximum benefits to the Haida Nation from the NaiKun project, including revenue sharing, environmental stewardship, and employment and economic development opportunities for the Haida.

The agreement formalizes the relationship between the Haida Nation and NaiKun which has been ongoing since 2002, and builds on the memorandum of understanding signed by the two parties in May 2007.

"The establishment of the limited partnership marks a significant milestone for NaiKun's business relationship with the Haida and is a key step forward for the development of offshore wind energy in British Columbia," said Michael C. Burns, chair of the board of directors at NaiKun.

"This agreement is the result of many years of working together and it reflects the commitment from both partners to move this project forward. NaiKun will gain from the knowledge and insight of the Haida and welcomes the thoughtful support of the Nation and its leaders," said Mr. Burns.

"The Haida people support development that brings benefits of all kinds - individual, commercial and environmental - to Haida Gwaii and to the Haida Nation," said Guujaaw, President of the Haida Nation.

"We fully believe that, subject to confirmation of environmental feasibility, this offshore project will bring significant long-term benefits to the Haida Nation. For these reasons we are proud to be participants in the project," said Guujaaw.

The Haida Nation and NaiKun Wind Operating Inc., a subsidiary of NaiKun, will participate equally in the partnership both in terms of ownership and economic value. NaiKun Wind Operating Inc. is the designated General Partner.

The project is contingent upon receipt of environmental approvals from the Haida Nation and through the harmonized federal/provincial environmental assessment process, and the award of an Electricity Purchase Agreement from BC Hydro.

Training and recruiting for the project will begin immediately to ensure a qualified workforce is in place as activity ramps up for the start of construction in 2012.

In addition to support from local First Nations, the NaiKun project also has strong public support. A public opinion poll conducted for NaiKun by the Mustel Group in September 2008 indicated that 73 per cent of British Columbians support the project.

NaiKun Wind Energy Group Inc. (NKW) is a British Columbia-based renewable energy company that is traded on the TSX Venture Exchange. Additional information is available on NaiKun's website: www.naikun.ca.

SOURCE: NaiKun Wind Energy Group Inc.

NaiKun Wind Energy Group Inc. Doug McClelland Director, Communications (604) 631-4487 Email: dmcclelland@naikun.ca Website: www.naikun.ca

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Naikun Wind signs MOU with Prince Rupert Port Authority

2009-03-10 08:38 ET - News Release

Mr. Doug McClelland reports

NAIKUN WIND SIGNS AGREEMENT WITH PRINCE RUPERT PORT AUTHORITY

Naikun Wind Energy Group Inc. has signed a memorandum of understanding with the Prince Rupert Port Authority covering important logistical elements for the construction phase of the company's offshore wind energy project in northwestern British Columbia.

The agreement will allow Naikun Wind to develop areas where its submarine cable will meet the shoreline. The cable transmits wind-generated electricity from the project site off the east coast of Haida Gwaii (the Queen Charlotte Islands) to the British Columbia mainland's electricity transmission grid.

The agreement also provides Naikun Wind with the opportunity to develop an area for a facility for subassembly of wind-turbine generators and other equipment related to its project, the first proposed offshore wind farm in Canada.

The port authority manages property on Ridley Island, south of Prince Rupert, which is the planned landfall site for the transmission cable from Naikun Wind's project.

"We are pleased to be working with the port authority to help us develop this important component of our project," said Matt Burns, vice-president of Naikun Wind. "It is an organization with a demonstrated track record for developing valued facilities and shares Naikun Wind's commitment to generate renewable and clean energy for British Columbia."

Mr. Burns said that the transmission component of the project will generate jobs for the community, particularly construction work.

The agreement is the latest in a series of arrangements that Naikun Wind is making as project development moves forward. Naikun Wind has signed a partnership agreement with the Haida Nation and commercial agreements with the Lax Kw'alaams and Metlakatla First Nations. Enmax Green Power is a key participant in the project, and Naikun Wind has signed a letter of intent with Siemens Wind Power for the supply of wind turbine generators.

The main objective of the meteorological station project was to provide a stable and accessible offshore platform for wind-measurement instruments. Installation of the station was an essential step in proving the strength of the wind resource in Hecate Strait and confirming the commercial viability of the 396-megawatt wind energy project being developed by Naikun Wind.

The meteorological station was sited, permitted, designed, fabricated, installed and commissioned in just six months. Local contractors were used to manufacture and install the structure, and there was no adverse impact on the environment or local fisheries. The station uses laser-based ZephIR LiDAR technology to measure wind speed, direction and other attributes at multiple heights.