Description

The Williams Lake Power Plant is a 60 MW wood waste fueled electricity generating plant which consumes approximately 600,000 green tons of bark, sawdust and other wood waste products per year. The wood waste fuel is provided by five surrounding sawmill operations which collectively process over one billion board feet of lumber per year.

Principal Agreement

Electricity from the Williams Lake Power Plant is sold under a 25-year electricity purchase agreement to The British Columbia Hydro and Power Authority.

Financing

Tondu led the effort to secure financing and closed the Cdn. $135 million non-recourse debt and Cdn. $15 million equity financing on May 2, 1991. The debt was provided by a group of Canadian insurance companies and pension funds with a fixed interest rate and a 22-year term. When the Williams Lake Project financing was completed in 1991, it was the largest independent power plant financing ever completed in Canada and second largest non-recourse financing in Canadian history. It was also the first Canadian non-recourse transaction funded by financial institutions prior to the completion of construction.

Performance

From the beginning of commercial operations in April, 1993 until Tondu sold its interest in the Williams Lake Plant in August, 1997, the plant exceeded performance expectations.

Technology

The Williams Lake Power Plant is fueled with 100% wood waste and uses standard water wall boilers with a hydrograte fuel feed system. Particulate emissions are controlled by an electrostatic precipitator. Electricity is generated by a full condensing high pressure steam turbine.

Development Responsibilities

Tondu identified the project and led the negotiations for the principal contracts including the power purchase agreement, the turnkey construction contract and the project financing. Tondu also managed the engineering and construction of the project as well as the development of the operation and maintenance organization including staffing, training and the plant policies and procedures.

Ownership and Management

Tondu controlled 33% and through affiliates owned 25% of the equity in the Williams Lake Power Plant until August, 1997 when our interest in the project was sold to BC Gas. BC Gas was one of the investment partners Tondu brought into the project.