August 7 (Renewables Now) - Norwegian multinational Equinor ASA (NYSE:ENQNR) will subscribe to shares in the firm behind a 120-MW wind farm being constructed in Argentina, it announced on Tuesday.
Through a subsidiary, the European firm has entered into an agreement with Argentine power producer YPF Luz. That deal calls for Equinor to take a 50% stake in Luz del Leon, the company in charge of the Canadon Leon wind project in the province of Santa Cruz. In return, Equinor will make an equity contribution of USD 30 million (EUR 26.78m).
The project will require around USD 190 million in total investments. Its output has already been sold to Argentine wholesale power market administrator CAMMESA under the RenovAr 2 tender for 20 years and to Argentine oil group YPF SA (BCBA:YPFD) under a 15-year power purchase agreement (PPA).
The deal is subject to certain precedent condition. After the transaction is closed, Equinor and YPF Luz will jointly control Luz del Leon.
(USD 1 = EUR 0.893)