Connecticut-based energy industry private equity and infrastructure investor First Reserve Corp. and Spanish renewables company Renovalia Energy have created a joint venture company – the $1-billion Renovalia Reserve – to acquire and operate wind energy projects in Europe and North America, marking Renovalia Energys presence in seven countries.
First Reserve will initially commit $150 million to the project, which will eventually have $300 million in equity to have a total value of about $1 billion including debt.
Initially Renovalia Reserve will consist of Renovalia Energy’s 259 megawatts of operating wind installations in Spain and Hungary and a 300-MW project pipeline in Canada, Romania, and Spain. Currently the only project the company has in North America is in Alberta where Renovalia Energy has invested in a 200-million euro, 120-MW Peace Butte wind farm, which is expected to come online in the third quarter of 2012.
First Reserve Corp. director John Barry said Renovalia Energy was chosen to embark on wind energy investments due to its deep experience in the wind industry, its broad renewable energy sector platform, and its solid financial track record.
During the first nine months of 2011, Renovalia Energy’s earnings before interest, taxes, depreciation, and amortization grew by 27.5 percent from around 59 euros during the same period last year, to 76.5 million euros.
Its turnover was 140 million euros by the third quarter of 2011, a 53.8 percent increase from 93 million euros in the same period 2010.
«Renovalia Energy is a great partner to have in the wind energy industry. The combination of its track record and expertise, and its potential for significant international growth is extremely attractive for us,» Mr. Barry said.
First Reserve has over $23 billion of raised capital invested exclusively to energy and natural resources industries in its more than 28 years of operation.
It has an existing joint venture agreement with Energy Corp. for America that serves to boost its natural gas investments, wherein it has poured $100 million.
For his part, Renovalia Energy’s chairman and appointed head of the newly-formed Renovalia Reserve Juan Domingo Ortega, said: «Securing a long term, established partner such as First Reserve, which is a preeminent energy infrastructure investor, is an important development in Renovalia Energy’s goal of becoming one of the world’s leading companies in the renewable energy sector.» (Jhoanna Frances S. Valdez)
