Wind Works Power buys 49% of 4.6-MW German wind farm
Dec 12, 2012 - Canadian firm Wind Works Power Corp (OTCQB:WWPW) yesterday said it had purchased a 49% stake in a 4.6-MW operating wind farm near Duisburg in Germany for USD 1 million (EUR 767,000).
The renewable energy company made the acquisition through its wholly-owned affiliate Zero Emission People Capital GmbH and has an option to lift its holding to 75%.
The wind farm was completed in 2011 and uses two Enercon E70 turbines of 2.3 MW. It benefits from 20-year feed-in tariff (FiT) payments under German federal law and is expected to generate about USD 650,000 in revenues per year through the sale of power.
"We are very excited to acquire our first producing asset, which along with the royalty we earn on Wind Park Burg 1, will generate a steady stream of revenue for Wind Works," said president and chief executive Ingo Stuckmann. Wind Works handed the 4-MW Wind Park Burg I facility in Germany, the first wind farm to be built by the company, to private investors earlier this year. The company is to earn a 1% royalty on gross revenues of the wind park, which could potentially rise to 2% if the facility was to meet certain performance targets.
Wind Works says it is developing 27 MW of near-term permitted projects in Germany, 90 MW of projects in the Canadian province of Ontario contracted under its FiT scheme as well as 475 MW of projects in the US.