Spanish company awarded two B.C. bioenergy contracts

October 29, 2013, Bilbao, Spain – Spanish multinational
energy company Iberdrola Ingenieria was awarded in Canada contracts for the
construction of Fort St. James and Merritt biomass power plants, with a combined
capacity of 80 megawatts (MW). The two contracts are valued at €240 million.

The company was the successful bidder in an international
tender to commission two biomass facilities in British Columbia. The tender was
called by Canadian investment fund Fengate Capital.

Iberdrola’s subsidiary has signed one contract to develop
and build the Fort St. James biomass power plant, on which work is expected to
begin in November of this year.

The company also acquired the right to build a second 40-MW
facility named in Merritt, with work scheduled to begin in February 2014.

The two turn-key contracts are the most relevant to have
been signed by Iberdrola Ingenieria in the biomass sector to date.

Iberdrola Ingenieria will be in charge of all stages of
construction and commissioning, as well as building two transformer substations
and the power lines connecting the plants to the grid.

The plants will be equipped with "grate" design
steam generators and will be fuelled by sawdust and waste from local sawmills,
forestry plantations and clean-up operations.

When commissioned, the biomass plants will be among the most
powerful in the Canadian market, supplying electricity to 160,000 homes and
helping to prevent the emission to the atmosphere of 570,000 tonnes of carbon
dioxide per year.

The construction work on the two facilities will create
approximately 500 jobs, with further 22 new direct jobs for the plant’s
operation and maintenance.