Oceanic Wind Energy Inc V.NKW.H

Management Discussion and Analysis

[BayWall]

Management Discussion and Analysis (“MD&A”) reviews the activities of Oceanic Wind Energy Inc. (Selected paragraphs, Jan 25, 2024)

 

It is critical for the Company to bring on a major partner with the desire and capacity to further the development of the project and participate in the upcoming BC Hydro call for power that has been scheduled for Spring 2024. The Company is currently in discussions with such a company and is optimistic that with the increasing demand for electricity in BC, and the upcoming BC Hydro power call, that a partnership can be put in place. However, Oceanic cannot predict if such a partnership can be concluded on acceptable terms.

 

The Government of B.C. is facing increasing pressure related to its 2030 climate targets and the lagging pace of electrification. This has resulted in the government directing BC Hydro to engage existing and emerging industrial customers to discuss the development of additional generation assets to meet the growing gap between supply and demand which is forecast toward 2030 and beyond. This and the growing supply deficit resulted in the province announcing the first of many Clean Power calls in 2024. BC Hydro has further stated they require utility scale projects that have peak generation in the winter, when the electricity demand is the greatest.

The Project in Hecate Strait will be well positioned due to its scale and proximity to the emerging large scale industrial demand on the North Coast. To this end the provincial government can assist in facilitating the strong First Nations partnerships required for this project. The province has tools that a private developer does not, and this avenue should be pursued concurrently alongside Indigenous partnerships. Both the provincial and the federal governments have established numerous programs that will substantially assist in reducing the levelized cost of the energy produced, predicted to be a reduction of 25% to 45%.