The agreement between REG and Creagh Concrete covers any future expansion of the existing consented scheme and the establishment of a 50/50 joint venture to develop further wind power projects in Northern Ireland. REG’s initial share of the Draperstown wind farm will be 4MW and subject to the normal legal challenge period, the project is expected to become operational during 2012.
As consideration for its share in the current joint venture REG will pay Creagh Concrete £1m in cash and £100,000 in REG shares, to be issued at mid-market price upon financial close. The cash will be provided from REG’s existing resources.
Andrew Whalley, Chief Executive Officer of REG, said: "Creagh Concrete is one of Ireland’s most successful private companies and this joint venture agreement is the first step in REG’s plans to build a portfolio of distributed wind projects in a region with an excellent wind resource. This project is the fifth scheme with planning consent to enter REG’s portfolio in the last ten months and increases our capacity in procurement or awaiting construction to 28MW. This is in addition to 41.15MW of operating wind assets."
Renewable Energy Generation Ltd (REG) is a UK renewable energy group. The Group’s main business is the development, construction and operation of wind farms in the UK and generating power from refined used cooking oil in the UK.
REG Windpower: based in Truro and Bath, UK, it currently operates ten wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Cumbria and Gwynedd, with a total capacity of 41.15MW and has a development pipeline of over 1000MW.
Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).