Oceanic Wind Energy Inc V.NKW.H

Cost competitiveness

[BayWall]

I'm looking at the decreasing cost derived from wind. At the rate it's going it will (or is) cheaper than hydro. When compared to the rest of the world it would be competitive.

The Vineyard Wind's Massachusetts 800MW offshore project came in at US 6.5 cents kwh.

For "Onshore" wind in Alberta a recent cost was 3.7 cents/kwh. I think that's in Canadian funds. BC Hydro for large customers 6 cents.

Oceanic in their MD&A report emphasize that a strong supply chain from Asia will further reduce cost of offshore wind in BC. Also larger more efficient turbines. Add in economies of scale, a gross capacity factor above 60% and wind production 97% of the time.

Even offshore windpower will be much less than hydro.

This in turn can make industries using electricity more competitive around the globe. That's why I think LNG Canada Phase 2 will go ahead, maybe even a fully electric. Low cost natural gas and low cost unsubsidized electricity, a potent combination.

For that matter every future LNG project in BC would benefit.