The acquisition is expected to be immediately free cash flow positive and earnings accretive.
Currently comprising 11 wind turbines, the St. Breock wind farm in Cornwall has been generating wind power electricity since 1994. With an average annual output of approximately 11 GWh, the site generates enough renewable wind energy to supply over 2500 homes.
REG has conducted detailed due diligence on the wind farm with the aim of repowering it to increase capacity. Further development work is underway in advance of a planning submission.
The acquisition is in line with the Company’s strategy to acquire as well as self develop, own and operate wind farms in the UK and at current capacity, St Breock will increase the Group’s operating wind capacity to 26 MW.
Andrew Whalley, Chief Executive Officer of REG, commented: "The acquisition of the St. Breock wind farm is an excellent opportunity to repeat the strategy employed at Goonhilly of acquiring an operating wind farm with the intention of repowering it with new, more efficient, turbines. The purchase further underlines REG’s intention of investing £100 million in renewable energy projects over the next three years through organic growth from its 350MW development portfolio and opportunistic acquisition."
Renewable Energy Generation Ltd (REG) is a UK orientated renewable energy group. The Group’s main business is the development, construction and operation of wind farms in the UK and the generation of power from waste cooking oil.