The GE unit and KGAL agreed to invest structured equity in Extresol II, developed by Spain-based ACS, Europe’s largest developer, builder and operator of solar thermal power plants. Additional financial details were not disclosed. ACS has built more than (EURO)2 billion worth of concentrated solar power facilities with molten salt storage in Spain. An ACS subsidiary, Cobra, finished construction of Extresol II in Dec. 2010 and provides operations and maintenance services to the plant.
"This transaction complements our growing European renewables portfolio and brings with it a different technology – concentrated solar power with salt storage – working with strong local partners," said Andrew Marsden, a managing director and European leader at GE Energy Financial Services. "Such investments also support ecomagination, GE’s business strategy to create value for customers by solving energy, efficiency and water challenges."
This investment is GE Energy Financial Services’ first in a concentrated solar power plant using molten salt storage. Concentrated solar power involves generating power from steam turbines with free, clean heat from the sun, avoiding the use of traditional fossil fuels such as coal, natural gas or oil. The plants use mirrors that reflect sunlight to heat a thermal fluid. The fluid is used to boil water to create steam and power steam turbines that generate electricity. Extresol II stores some of the solar heat by melting a special salt mixture during the day, then extracts the heat when the sun isn’t shining, such as at night, to continue producing steam for the turbines. Because salt is able to store heat for long periods, these facilities can generate electricity an extra seven hours a day.
This solar power plant is contributing to the European Community’s goal of generating 20 percent of its power from renewable sources, reducing emissions by 20 percent and increasing energy efficiency by 20 percent by 2020. The plant generates enough renewable electricity to power approximately 37,900 average Spanish households and avoids approximately 149,000 tonnes of carbon dioxide per year assuming its power displaces generation from coal- and oil-fired power plants.
"Ourinvestment in the Extresol II solar thermal power plant expands our renewable energy portfolio into a new asset class and is a natural expansion of previous investments in photovoltaic and wind power plants," said Dr. Klaus Wolf, Managing Director of KGAL. "We now have more than (EURO)1.5 billion in our renewable energy portfolio, with this investment marking another milestone in the history of KGAL’s infrastructure investing. We are pleased to team up with GE Energy Financial Services and retain ACS as a reliable partner and service provider to the project. It underpins the long-term focus and sustainability of our investment approach."
Spain was the first country to use concentrated solar power integrated with molten salt storage. Sixteen 50-megawatt projects have been built in Spain in the last five years, with another 25 under construction or planned. Worldwide, 30 concentrated solar power projects are operating, 10 using molten salt storage and more than 20 under construction or development.
GE Energy Financial Services’ experts invest globally across the capital spectrum in essential, long-lived, and capital-intensive energy assets that meet the world’s energy needs. In addition to capital, GE Energy Financial Services offers the best of GE.’s technical know-how, technology innovation, financial strength, and rigorous risk management. Based in Stamford, Connecticut, USA, the GE business unit helps its customers and GE grow through new investments, strong partnerships, and optimization of its approximately US$20 billion in assets.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide.
KGAL GmbH & Co. KG, located in Grünwald near Munich (Germany), opens up intelligent solutions for investors in the area of real capital investments for more than 40 years. As of December 31, 2010, the KGAL Group managed an investment volume of (EURO)25.2 billion in real estate and investment entities in the following sectors: aircraft, real estate, infrastructure, ships and private equity. KGAL currently manages capital for investors with 111,700 equity investments in a total of 159 active limited partnership funds. They include retail funds, funds for institutional investors and individual investments for wealthy clients. The investors have entrusted to KGAL (EURO)6.5 billion in equity capital for these funds. KGAL is an investment company owned by Commerzbank, BayernLB, HASPA Finanzholding and Sal. Oppenheim. Subsidiaries are located in Italy, Canada and Austria.