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Fred. Olsen to acquire 20-MW US offshore wind project - report

Offshore wind farm. Author: Jonas Bengtsson. License: Creative Commons. Attribution 2.0 Generic

December 8 (SeeNews) - Fred. Olsen Renewables AS has agreed to take up the development of a 20-MWp offshore wind project in the US from non-profit Lake Erie Energy Development Co, or LEEDco, the Cleveland Plain Dealer said Monday, citing officials.

The Norwegian wind farm operator, part of Bonheur ASA (OSL:BON), has already incorporated a US subsidiary through which it would build the USD-120-million (EUR 110.7m) six-turbine pilot facility planned for Lake Erie in Cleveland. The company has signed a deal to buy project-related research assets from LEEDco early next year for an undisclosed price, the newspaper quoted LEEDCo’s president Lorry Wagner as saying.

At present, Fred. Olsen is holding talks with a local bank in a drive to secure loans for the project. It is also expected to receive up to USD 40 million from the US Department of Energy next summer, Wagner told the paper.

The initial project could provide a platform from which to make use of Lake Erie’s roughly 5-GW potential, Fred. Olsen Renewables CEO David Brunt told the paper.

The offshore wind park is seen to become operational by the summer of 2018, according to the report. Local firms have already committed to buy a portion of its output and the developers are holding talks with others as well, the officials have added.

(USD 1.0 = EUR 0.922)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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