First Reserve Corporation and Renovalia Energy have signed a $150m deal to create a wind turbines joint venture, marking a major boost for Renovalia’s plans to establish itself as a leading wind farm provider.
Private equity and infrastructure investor First Reserve confirmed plans today to establish a new company with Renovalia, dubbed Renovalia Reserve, which will seek to own and operate nearly 600 MW of wind farm plants in Europe and North America.
The 559 MW wind energy portfolio will comprise Renovalia’s existing 259 MW of wind farms in Spain and Hungary, and more than 300 MW in the pipeline in Canada, Romania and Spain.
Renovalia has more than 570MW of green energy projects in operation and under construction, consisting of 10 wind farms, six photovoltaic solar energy plants, one mini-hydro plant and one concentrating solar thermal power plant.
Juan Domingo Ortega, Renovalia Energy chairman, said that First Reserve’s investment will take the company a major step closer to achieving its goal of becoming a global player in the renewable energy market.
First Reserve, one of the world’s largest energy-focused private equity investors, said that it was attracted to Renovalia Energy by its experience in the sector, wide-ranging portfolio, strong financial track record and growth potential.
During the first nine months of 2011, Renovalia Energy’s pre tax earnings grew by 27.5 per cent compared to the same period last year. Turnover stood at €140m by the end of the third quarter, compared to €93m in the same period in 2010.
John Barry, director of First Reserve, told the Financial Times that the company is seeking to invest in further projects in North America and Europe.
By José Santamarta, www.renovalia.com/