Tuesday, 21 June 2011

Infigen sells German wind assets

15 June 2011, Page: 41

Infigen Energy has agreed to sell its wind power assets in Germany to a European fund for 154.6 million ($210m). The wind farm developer was awaiting German regulatory approval that could take 30 days, it said.

The company said it would provide more details on the sale of the assets, which have a capacity of 128.7 MWs, when the transaction was completed. Infigen Energy scrapped a plan in April last year to sell the German assets and later that month abandoned an effort to sell its US wind power business after failing to attract high enough bids.

The company, formerly known as Babcock and Brown Wind Partners, is focusing on Australian wind power projects as Canberra moves towards a target of generating 20% of the nation's power from renewable sources by 2020.

The renewable energy developer, whose shares have dropped 62% in Sydney trading in the past 12 months, would not pay a dividend in the 2012 and 2013 financial year ends in order to help fund its expansion in Australia, Infigen Energy said in a separate statement. The company would give an update on future distributions be fore the end of 2013, according to the statement.

It still expected to complete construction of the Woodlawn Wind Farm at Tarago, 250km south of Sydney, by this year. Energy generated by the project could power 23,000 homes and help NSW meet rising electricity demand, it said. The company is also competing for funding from Australia's $1.5 billion solar initiative. Infigen Energy and Suntech Power Holdings Co of China are among companies picked to advance in the contest.