Shell, Hydro Announce Joint Wind Power Agreement

Winnipeg, MB -- - Manitoba Hydro and Shell Canada announced today that they have entered into an agreement to jointly explore development, construction, ownership and operation of wind power generation opportunities in Manitoba.

Manitoba HydroÂ’s experience in power generation, transmission and distribution combined with Shell CanadaÂ’s experience in resource development and project management bring great strength and potential to this agreement.

Under the agreement, both Manitoba Hydro and Shell Canada will independently acquire wind rights and then jointly choose the best site(s) for any identified opportunities. Markets of interest include Manitoba as well as export opportunities (US, Ontario, Saskatchewan).

Manitoba Minister for Energy Science and Technology, Tim Sale, said, “ This is another exciting step in the development of wind technology here in Manitoba - - the marriage of Shell Canada’s commitment to wind power with Manitoba’s wind resources, and the opportunity for Manitoba Hydro to gain experience and explore opportunities for future development of this valuable resource.”

“We are pleased to partner with Shell Canada for wind farm development. Manitoba Hydro is interested in exploring how Manitoba’s extensive large-scale, low-cost renewable hydro power facilities could be complemented with the development of wind power," said Bob Brennan, Manitoba Hydro President and CEO. Manitoba Hydro is currently completing work to investigate wind resources for the province.

“We believe renewables will play an increasingly important role in meeting the world’s energy needs and it makes sense to look at adding renewables to our energy portfolio. We take a broad perspective and a long-term view of the future of our business and recognize that society increasingly insists that energy needs are met in an environmentally and socially responsible way. We think wind power holds promise and we’re pursuing opportunities for investment,” said Tim Faithfull, President and CEO, Shell Canada. In addition to this agreement with Manitoba Hydro, Shell Canada is researching other wind resources across Canada and identifying key locations for potential wind farm developments.

Historically, the cost of generating windpower in Canada has exceeded more traditional forms of power generation. However, advances in technology and equipment have contributed to making wind power generation more competitive. Recent changes in CanadaÂ’s fiscal regime have also improved the economics of renewables and should provide a catalyst for investment.

Shell Canada is one of CanadaÂ’s largest integrated petroleum companies, with its headquarters in Calgary. The company is a major natural gas producer; it owns 60 per cent of the Athabasca Oil Sands Project; and is a national manufacturer and marketer of petroleum products across Canada. It is actively pursuing long-term commercial opportunities in wind power.

Manitoba Hydro is the province's electricity and natural gas utility, headquartered in Winnipeg. The provincial Crown Corporation serves almost 500,000 electric customers throughout Manitoba and 250,000 gas customers in various communities throughout southern Manitoba.