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3i enhances presence in gas and power market with ¬30m investment in Electrawinds
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Fifthring Integrated Corporate Communications
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3i, Europe’s leading private equity and venture capital company, has enhanced its presence in the gas and power market by investing €30m for a minority stake in Electrawinds, Belgium’s leading independent renewable energy company.
Electrawinds, which operates in Belgium and Italy, currently has 45MW of installed capacity in wind and biomass energy. Since its formation in 1998, Electrawinds has invested a total of €100m in renewable energy projects. The company has plans to add a further 400MW of energy generation. 3i’s investment will allow Electrawinds to construct and develop additional wind and biomass projects across Europe. The company currently has branches in Portugal, Greece, Romania, Bulgaria and Africa and today’s investment will allow these activities to be expanded. Over the coming year, Electrawinds is planning to invest a further €100m in renewable energy projects. Electrawinds is aiming for turnover of €22.8m in 2006, €50m in 2007 and €100m in 2008.
Mark Kerr, Director of 3i’s Oil, Gas & Power team, said: “Last year we indicated our commitment to invest in the gas and power sectors, and this investment in Electrawinds, following on from our earlier investments in wind farm company Gamesa, and Vijai Electricals, serves to reinforce that commitment.
“Electrawinds is a great example of where 3i‘s local relationships come together with the deep sector knowledge from our Oil, Gas & Power team. Through our international network and sector focus, we will be able to add significant value to Electrawinds by finding and introducing potential development opportunities, non executive directors and corporate partners. We see Electrawinds as an excellent platform from which to build a substantial renewable energy business.“
Pieter de Jong, 3i Director Benelux, said: “We are attracted to this company due to the strong and experienced management team, the growth prospects for the renewable energy market and the quality of Electrawinds’ development pipeline. We look forward to supporting Electrawinds in converting this pipeline and to building the company into one of Europe’s foremost independent renewable energy developers.”
Luc Desender, CEO Electrawinds, said: “We are delighted to welcome 3i as a partner. Their sector expertise and geographic network will be invaluable to us as we grow the business and realise our ambitions of becoming a leading player in the European renewable energy market.”
The worldwide market for renewable energy is estimated at $100bn pa and has been growing at 30% pa over the last 5 years. This growth is driven by concerns over global warming and carbon emissions, the impact of high oil prices and the desire to diversify supply sources and reduce dependence on imported fossil fuels.
3i was advised by Ernst & Young’s Renewables, Waste & Clean Energy Group, Allen & Overy and Mott MacDonald. Electrawinds was advised by Capital Advice, Baker & McKenzie and lawyers De Broeck, Van Laere, Van Camp, Coopman.
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