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THE BUSINESS OF GREEN - Airtricity in major US deals worth 480m
Ken Griffin

 


IRISH renewable energy giant Airtricity has just completed two major deals, worth a combined total of around 480m, which look set to secure its position in the US energy market.

The firm has secured investment from US conglomerate General Electric and banking giant Wachovia for its new 440m Roscoe 1 wind farm development in Texas, which is due to be completed at the end of this year, in a deal worth an estimated 280m.

It has also placed a new order for 197 additional wind turbines from Japanese industrial giant Mitsubishi in a 200m, which follows its purchase last year of 250 turbines from the firm.

The turbines covered in the new deal will be delivered in 2008 and 2009 and are intended for Airtricity projects in Texas, Colorado and New Mexico. Airtricity now accounts for around a quarter of Mitsubishi's total yearly turbine output.

The deals came as Airtricity officially opened it first US wind farm at Forest Creek, West Texas last Friday.

Chief executive Eddie O'Connor said the deals demonstrated the willingness of major international players to back the firm.

"There's a good few major US players who want to deal with us. Indeed, General Electric have already approached us about investing in Roscoe 2, the second phase of our Roscoe development, " he said.

O'Connor said the new deals would help the firm's US division to reduce its reliance on Texas by allowing it to expand into other states such as Colorado, where the firm had acquired sites for wind farms.

He said there was massive potential for Airtricity to expand further in the US.

"Our goal is to make wind mainstream in the US. After all, there's enough wind blowing in the central states of the US to power the country and we can help solve their security of supply and global warming problems."

O'Connor also said there had been significant interest among investors regarding the forthcoming sale of a 49% stake in Airtricity's American arm, which is designed to help fund its ambitious plans there.

He said, however, that it would be another month before the company would have a clearer idea of who its prospective investment partner would be.




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