TSX-V Symbol: GRB
Issued and Outstanding: 11,057,000
VANCOUVER,
April 22, 2013 /CNW/ - Greenbriar
Capital Corp. (the "Company" or "Greenbriar", symbol GRB on the
Toronto Venture Exchange or symbol GEBRF on the US OTC markets),
today announces the execution of a Letter Agreement with an arm's
length third party, to acquire an undivided 100% interest in and to
an 80 MW wind project located in Utah.
The acquisition will comprise permits and permit
applications, biological and environmental studies, reports and
data, engineering, design, geo-tech, technical studies,
transmission and interconnection facility studies, agreements and
applications, on site wind data and met towers, all applicable
consents and approvals for the project, wind energy land leases,
and the nearly completed power purchase agreement for 80 MW.
Greenbriar will commence the completion of the
land entitlement process, invest in the real property, engage
project lenders and place Requests For Proposals for the EPC
Balance of Plant and turbine vendors.
The agreement is subject to final definitive
agreements being executed however the agreement does contain some
binding provisions. Greenbriar will not issue any shares to acquire
or fund this acquisition, but will rely on internal cash flows from
already contracted real estate sales and the terms of this
acquisition is confidential.
On a related matter on April 15, 2013 the US Internal Revenue Service
("IRS") published rules on what developers must do to start
construction before the end of 2013 and qualify their renewable
projects for either the 30% investment tax credit on total project
capital expenditures or receive the production tax credit for 10
years on electricity output. The IRS stated there is no deadline to
complete projects that start construction this year.
There are two ways to show that a project is
under construction in time. One is showing that "physical
work of a significant nature" commenced at the site or by showing
the developer "incurred" at least 5% of the total project cost by
year-end. Greenbriar is committed to incurring 5% of total project
cost by year-end. The IRS guidance is in notice 2013-29.
Once more, the US Congress and Administration
has delivered in its promise to support renewable energy. These
incentives in effect provide Greenbriar about 30% of the total
funding needed to meet the project capital structure. This 30%
amounts to the normal equity contribution and substantial dilution
one gets to avoid by building renewable projects inside the US.
Greenbriar applauds the US Congress and Administration for their
responsible and visionary approach. Even though the renewable
industry is extremely grateful for these incentives, it is
important to note that these renewable incentives are only a very
minute fraction of the trillions of dollars of subsidy the fossil
fuel industry has received over the last four decades.
Jeff Ciachurski, CEO of Greenbriar Capital
states: "We are pleased to be involved with helping Utah achieve energy independence and providing
the Utah rate-payers with clean,
reliable, and affordable 100% carbon free electricity."
ON BEHALF OF THE BOARD OF DIRECTORS
"Signed"
Jeffrey J. Ciachurski
President, Chief Executive Officer and Director
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.
SOURCE Greenbriar Capital Corp.