Alter Energy to shift investment focus from Ukraine to US, EU
Jun 11, 2014 - Swiss renewable energy investor Alter Energy Group AG (GXG:AEGC) said yesterday it had temporary put its Ukrainian operations on hold and unveiled a plan to focus on purchases in other European markets and the US.
CEO Edward Klaeger named the unstable economic and geopolitical conditions in Ukraine as the reason for the company’s decision. He also mentioned that certain amendments should be made with regard to the country’s Green Tariff Law, including the clear establishment of the feed-in tariff (FiT) for solar power and local content requirement (LCR) in parliament.
Klaeger also noted that AEG is ready to acquire over 20 MWp of operating assets in Ukraine but will proceed with this move once the situation stabilises.
Also yesterday, the company said it had entered into a letter of intent (LoI) to buy an operating wood pellet plant in the US for an undisclosed sum. AEG intends to export the initial 110,000 tonnes per year of wood pellets to European markets and subsequently boost annual production capacity to 280,000 tonnes during the 2015 summer off-season.
“The expansion will increase economies of scale and help meet the rising demand for wood pellets in the EU as well as the domestic market, which is expected to grow significantly in the coming years as the US brings more renewable energy sources online to meet its emission reductions targets,” Klaeger commented.