GFG Alliance, Ignis to jointly develop 1.2 GW of renewables in Spain
Wind park in Spain. Author: Santi Villamarín. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
Global industrial business GFG Alliance and Spanish developer and energy services group Ignis have signed an agreement to jointly invest in 1.2 GW of renewables in Spain.
GFG’s energy business, Simec Energy Group, and Ignis have formed a joint venture (JV) aiming to develop, build, operate and maintain wind and solar farms for energy intensive industries.
The partnership plans to support the projects through long-term power purchase agreements (PPAs), the joint press release reads.
The companies said they will build their wind projects in the northern region of Galicia, while the solar farms would be scattered across Spain. The plan is to have the projects finalised by 2023.
Simec has around 600 MW of operating capacity and 2 GW in the development pipeline. Ignis has more than 400 MW of own assets, over 10 GW of renewables in development and acts as a market representative for gas-fired, thermal and renewable power plants, according to the release.
The partnership will support GFG’s plans to grow in energy intensive industries and its ambition to become carbon neutral by 2030, the conglomerate said.
The agreement will mark the first venture in Spain for GFG, which, besides energy, also runs aluminium and steel businesses. GFG was planning to come to Spain by negotiating the acquisition of the San Ciprian smelting plant in Galicia with Alcoa Corp (NYSE:AA). The US aluminium producer this week said that the parties had failed to agree on terms.
For Ignis, the JV deal comes on the heels of its agreement with French oil-and-gas major Total SA (EPA:FP) to develop 3.3 GW of solar projects in Spain.
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