Blessed with one of Canada's longest growing seasons, this town could soon become the country's solar energy capital.
California-based SunPower Corp. announced Wednesday that construction will begin immediately on one of Canada's biggest solar farms spread over two sites in Amherstburg.
The 20-megawatt project will cost about $130 million, company president Howard Wenger announced. Completion is expected by June 2011.
Two other companies — First Solar Development Canada and Toronto-based Helios Energy Inc. — are also hoping to establish large solar farms in Amherstburg.
The town is at roughly the same latitude as northern California and has a 212-day growing season.
The Korean firm Youil Ensys Corp. has selected Tecumseh for its first solar project in this area, but is looking for other sites in Essex County. The company is seeking environmental approvals and a power contract for a 6.9-megawatt project on North Talbot Road in Tecumseh.
SunPower has the first large, ground-based solar project to start construction in Essex County.
SunPower previously obtained all provincial and federal environmental approvals and a 20-year contract with the Ontario Power Authority under its Renewable Energy Standard Offer Program.
Only financing issues had postponed last year's expected construction start.
"This is great news," said Mayor Wayne Hurst of the SunPower announcement.
The town has been working on its tourism potential, but more jobs and a bigger tax base are needed, Hurst said in an interview.
Coupled with the news that offers from potential buyers are expected to come in soon for the bankrupt General Chemical property, Hurst is optimistic about economic growth to replace some of the jobs lost in a long list of plant closures.
In a press release, Wenger said Macquarie Power and Infrastructure Income Fund had agreed to contribute $33 million of equity financing. SunPower will design, build and operate the solar farm.
The Amherstburg Solar Park is expected to produce about 37,600 megawatt hours of electricity annually, enough to power about 4,000 homes. The OPA agreement pays $460 per megawatt hour for 20 years.
SunPower will use its own high-efficiency solar panels and tracker systems to allow the panels to move with the sun.
SunPower has more than 300 megawatts of solar power production worldwide, including the largest operation in the U.S. — the 25-megawatt DeSoto Next Generation Solar Energy Centre in Florida.
