Mainstream Renewable Power signs $1 billion deal to build wind farms in Chile
06 November 2008
First 35MW wind farm due for completion in 2010
Mainstream Renewable Power today announced the signing of a $1 billion joint venture deal with its local joint venture partner, Andes Energy. The joint venture company Andes Mainstream SA will see the development of an initial pipeline of 400MW of wind energy in Chile. The deal includes the 35MW Laguna Verde wind farm in the Valparaiso region which is due to be fully operational by 2010.
Under the terms of the agreement, Mainstream will hold a 90% share of the joint venture with Andes Energy taking a 10% stake.
The Laguna Verde wind farm, which is the most advanced project in the 400MW pipeline will, when fully operational in 2010, generate enough sustainable energy to power over 19,000 homes and prevent the release of between 34,000 and 80,000 tonnes of greenhouse gas emissions each year. During the construction phase, the project is expected to employ about 200 people as well as generating employment through local service provision. In addition, the wind farm will provide ongoing employment in its operations centre.
Commenting on the deal, Mainstream's founder and CEO, Dr Eddie O'Connor said, “I'm delighted that we have attracted such a great partner as Andes Energy. For us, partnership is key, because to really make this happen, you need to have the local knowledge and expertise on the ground. Renewable energy is at its infancy in Chile and we believe we have a lot of experience and learning to share with our new partner."
He added, “The Chilean government have recognised the economic, social and environmental benefits of creating this new industry which will have huge positive repercussions for its future. Its policy-makers have acknowledged its potential and are being proactive in putting the optimum support structures in place to extract maximum value, and that's why we've chosen Chile as a key emerging market."
On signing the agreement, Andes Energy's José Ignacio Escobar commented, “This partnership is great news for renewable energy in Chile. As a nation, our goal is to source 5% of our power from sustainable sources by 2010 and we're confident that by combining our knowledge of the local marketplace with the experience of the Mainstream team, together we will make a significant contribution to this target."
For further information, please contact:
Emmet Curley, Mainstream Renewable Power
Telephone: +353 (0)85 734 9946
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