Vattenfall acquires AMEC Wind for £126 million
Greenwise Staff
10th October 2008
Swedish state-owned energy giant Vattenfall has signalled its intention for a major push into the UK wind market, buying up AMEC Wind Energy Limited for around £126.6 million.
The cash buy gives Vattenfall 100 per cent ownership of all the wind energy operations of global power company AMEC.
AMEC Wind owns one of the largest wind development portfolios in the UK, with a potential of 573MW. Its onshore portfolio in the England and Wales represents 6.5 per cent of UK consented and in-development onshore projects, while in Scotland it has 9.9 per cent of Scottish consented and in planning onshore projects.
“This deal provides an excellent opportunity to expand our business in the UK by strengthening our local presence and leveraging our considerable experience in wind power,” commented Lars G. Josefsson, chief executive officer of the Vattenfall Group. “The UK is a prime target market for future renewables growth.”
Vattenfall is the fifth largest electricity generator in Europe and second largest offshore wind power operator in the world.
It already owns a 60 per cent stake in Horns Rev, the world’s largest offshore wind facility off Denmark’s Jutland Peninsula, and 100 per cent of the world’s third largest offshore wind farm, Lillgrund, between Sweden and Denmark.
In the UK, it currently owns and operates the Kentish Flats offshore wind farm, which has a capacity of 90MW. It recently announced its intention to make an offer to acquire Eclipse Energy, which is currently developing several wind projects in the UK with the potential of over 200MW.
AMEC has been looking to sell its wind energy business ever since its planning application for a 181 turbine wind farm on the isle of Lewis was turned down.
Alongside the sale, the two companies said they had also entered into a strategic alliance to develop the existing wind projects in the AMEC portfolio being acquired by Vattenfall as well as new wind projects in the UK.
Samir Brikho, AMEC chief executive said: “We are delighted to be working with Vattenfall as they build their position in the UK wind energy market. This is an area of national importance and together we look forward to making a significant contribution towards the UK’s targets for energy from renewable sources.”