Samsung big winner as Ontario signs multibillion-dollar clean energy deal

The government of the Canadian province of Ontario yesterday signed off one of the world's largest renewable energy projects, inking a $6.6bn deal that will result in 2,500MW of new wind and solar energy capacity being built.

Under the agreement a consortium – led by Samsung and the Korea Electric Power Corporation – will manage the development of 2,000MW-worth of new wind farms and 500MW of solar capacity, while also building a manufacturing supply chain in the province.

The project is scheduled to be undertaken in five phases, with construction of the first phase - a 500MW renewable energy cluster in southern Ontario featuring 400MW of wind and 100MW of solar power - set to begin in 2012. The resulting capacity will help to replace power currently provided by a coal plant in the area that is due to be decommissioned by 2014.

"This means Ontario is officially the place to be for green energy manufacturing in North America," said premier Dalton McGuinty, pointing out that the recently passed Ontario Green Energy Act means that renewable energy developers in the region can also access generous subsidies for clean energy production.

Under the terms of the agreement, Samsung – which was selected without an open tendering process - must build four manufacturing plants in Ontario, promising 16,000 direct and indirect jobs over the next five years.

These new manufacturing facilities will produce wind turbine towers, wind blades, solar inverters and solar assembly by 2015.

Samsung said it intends to use the facilities to provide technology to the Ontario developments and act as a base to push products into the US and other parts of Canada.

The deal is a major coup for Samsung, which is a relative newcomer to the green energy business and has said it is looking to use expertise from its other heavy industry divisions, including its shipbuilding group, to establish itself as a major manufacturer of wind turbines.