UK's REG Ltd. Buys Ontario, Canada wind energy firm AIM PowerGen

British wind energy investor buys Canada's AIM PowerGen

RICHARD BLACKWELL

A British firm that invests in alternative energy projects has established a foothold in Canada's burgeoning wind-power business, with the purchase of Toronto's AIM PowerGen Corp.

Renewable Energy Generation Ltd., (REG) which trades on the London Stock Exchange's alternative investment market, said yesterday it is paying $29.1-million for AIM.

AIM is a private developer of wind power, with projects planned in several provinces. Its one complete project is the 66-turbine Erie Shores Wind Farm in Southern Ontario, which has been delivering about 99 megawatts of power to the Ontario power grid since the spring.

AIM developed the project and still has a consulting contract, but it has sold Erie Shores to Canadian Power Income Fund.

AIM president Mike Crawley, who will stay on to lead the company under the new ownership, said the deal with REG will give his firm access to capital and expertise to get other projects up and running. AIM has about 2,600 megawatts of projects in various stages of development, and hopes to have several small ones in Ontario up and running by next year. Others are planned for Alberta, Saskatchewan, Manitoba and Newfoundland.

"The Canadian market is certainly very exciting because it really is at the cusp of a boom," Mr. Crawley said. While many other countries are further along in using the technology, "Canada is just at the beginning of it."

Renewable Energy Generation was established a little over a year ago exclusively to fund renewable energy projects, and has raised about $115-million (U.S.) in two stock offerings, chief executive officer Andrew Whalley said.