Canadian Hydro snaps up "world's largest" offshore wind project

Just one week after the Canadian province of Ontario approved feed-in tariffs for renewable energy developers, a Canadian energy company has acquired a massive offshore wind project being developed in the Great Lakes region.

Canadian Hydro paid an undisclosed sum to acquire what it says is the largest offshore wind project in the world from US-based renewable energy developer Wasatch Wind.

The 4.4GW project will be located between 5km and 30km offshore in one of the Great Lakes bordering Ontario and is expected to provide enough power for over two million homes. That far outstrips the current largest offshore wind farm, Denmark's recently opened 20MW Horn Revs 2 facility, as well as the UK's planned 1GW London Array project.

The deal comes just days after Ontario passed a feed-in tariff that will set an above-market rate for the sale of renewable power such as solar and wind energy, making it competitive with fossil fuel-based energy sales.

Under the new feed-in tariff, the offshore wind farm will be able to sell energy under a 20-year contract at $190 (£118) per megawatt hour.

Canadian Hydro said the new facility will come online in stages, with the first 400MW to 500MW of capacity to be completed by the end of 2014.

The province has committed to eliminate coal-fired power plants by 2014, and says that it has expanded its wind power from 10 turbines in 2003 to more than 670 today. It plans to have 975 wind turbines by 2012.