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Renewable Energy

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Shares in Renewable Energy Holdings (REH.L) were up today on the news that the green technologies firm has agreed a deal to purchase the Kobylany wind farm site in Poland, which will provide 30 MW of generating capacity with an accompanying off-take infrastructure and transformer station. REH will pay €68,000 per MW of generating capacity, making a total of €2.04m. The agreement allows for an initial lease term of 25 years, with an option to extend for a further 25 years.

The annual lease payment will be €25,000 (plus VAT) with an additional annual payment of €7,000 (plus VAT) for each turbine on the site. It is expected that there will be 15 wind turbines altogether. Construction is expected to start in Spring 2008, financed by REH’s credit facility with Standard Chartered Bank. Good to see the credit squeeze doesn’t apply for renewable projects.

REH is active in wind, wave and biomass. The company owns the CETO wave energy technology, which it is developing in co-operation with Carnegie Corporation.

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Written by Pete Smith

December 10, 2007 at 12:47 pm

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