AGL Energy Limited (AGK) announced that it has acquired two wind farm developments from Transfield Services Limited (TSE) for $9 million. The sale consists of the Barn Hill wind farm development project and the Crows Nest wind farm development site.
Under the agreement, AGL has acquired the right to install up to 62 turbines at Barn Hill, north of Adelaide, and the right to develop a smaller wind farm in Queensland.
AGL said the latter would allow it to expand its existing wind farm development at Crow’s Nest, near Toowoomba, by 20 turbines to a potential capacity of approximately 200 MW.
AGL managing director Michael Fraser said the transaction was consistent with the company’s strategy of developing a pipeline of renewable projects to meet its long-term obligations under the expanded renewable energy target scheme.
“The Federal Government’s commitment to a 45,000 gigawatt hours renewable energy target by 2020 has bipartisan support,” Mr Fraser said.
“AGL’s portfolio of current renewable generation and potential development opportunities positions us well under the expanded Renewable Energy Target scheme.”
Transfield Services’ managing director and CEO, Dr Peter Goode, said the sale realises the first benefits of the Transfields’ investment in the renewable energy sector.
“We have added considerable value by successfully taking the asset from concept phase, right through the complex feasibility, planning and approvals processes.”
“The additional sale of the Crows Nest development site demonstrates that our wind farm portfolio allows us to realise value at any stage of the development process.”
This agreement includes an exclusive right for Transfield Services to negotiate potential construction management opportunities for the Barn Hill project.
Transfield said once completed, the 62-turbine wind farm would have the capacity to power about 60,000 homes.
Meanwhile, Mr Fraser said that construction of AGL’s Hallett 2 Wind Farm was proceeding on budget and ahead of schedule, with first generation achieved in early May 2009. The project is expected to be fully commissioned in the second half of calendar 2009.
At 1028 AEST, AGL shares were up 22c to $13.90, while Transfield shares were down 2c to $2.62.
