January 13 (SeeNews) - Italy’s Enel Green Power SpA (BIT:EGPW) said on Wednesday it is entering the German market by acquiring a 78.6% stake in geothermal power firm Erdwaerme Oberland GmbH.
Enel Green has bought the majority stake from Erdwaerme Bayern GmbH & Co in a transaction valued at EUR 22 million (USD 23.8m). The sum covers the initial investment requirements for an up to 26-MW geothermal project Erdwaerme Oberland is developing in southern Germany.
The German firm will start geological exploration activities this year. It will develop the project under a mineral exploration concession granted by the Bavarian Ministry for Economic Affairs, Media, Energy and Technology. It is valid for three years from December 2015.
“We intend to build a solid platform for future investment opportunities in the country, both in geothermal power and in other sectors, contributing to achieving the target for the share of renewables in the European energy mix," said Francesco Venturini, CEO of EGP.
(EUR 1.0 = USD 1.081)