Origin gains more power with Wind

Summaries - Australian Financial Review
Thursday 7/5/2009 Page: 17

Origin Energy has acquired the private Victorian company Wind Power for an estimated $30 to $40 million, almost quadrupling the size of its wind development pipeline. Melbourne-based Wind Power is best known for its proposed Bald Hills development which, after being temporarily knocked back by the Howard government, was sold to Japan's Mitsui in mid-2008.

Wind Power's main project is Stockyard Hill, Victoria, a $1.4 billion turbine venture. Origin Energy chief executive Grant King told the Macquarie Securities conference yesterday that the federal government's renewable energy target would best be met by wind energy. Meanwhile, Origin Energy's joint venture with geothermal energy play GeoDynamics is facing problems, as the company struggles to stop an uncontrollable flow of steam from its Habanero-3 well in South Australia.

Origin Energy has also formally opened its $250 million coal seam gas-fed Talooma power plant, whilst the $35 billion joint venture with ConocoPhillips remains on track. Mr King said he believed only Origin Energy and British gas producer BG Group had enough reserves to underpin projects with multiple processing lines, despite Santos and Arrow Energy proposing multi-train developments in the region.