Italy's Erg boosts French wind business with acquisition
1 November 2008
The renewable energy arm of Italian refining group Erg has bolstered its French wind business with the acquisition of 50% of project developer Cita Wind and five project companies from French construction company GSEF. Erg Renew says it is paying a maximum of EUR 3 million for the acquisition. It will pay half the 2008 development costs. Once full authorisation has been obtained for each project, Erg Renew says it will increase its stake in individual project companies to 90%. At that time, an additional payment will be made to the seller, based on the wind farm's expected future output. Cita Wind has been active in developing wind farms in northern France since 2004 and currently has 288 MW in the authorisation pipeline, of which 168 MW are at an advanced stage. Erg Renew entered the French market in late 2007 with the acquisition of five operating wind farms with a combined generating capacity of 55.2 MW.
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