Arise Windpower Buys 18-Megawatt Wind Site on Gotland Island

Arise Windpower AB, a Swedish onshore wind developer, agreed to buy an 18-megawatt wind farm site on the island of Gotland from Vindshejkerna i Stjups AB, a company made up of local landowners.

The project north of Nasudden on Gotland has permits for six wind turbines, Arise Windpower said today in a statement. The company signed an “in principal” agreement to use turbines made by Denmark’s Vestas Wind Systems AS, Arise Chief Executive Officer Peter Nygren said by telephone. The internal rate of return on the wind project is “11 to 12 percent,” standard for such projects, he said, declining to give a purchase price

The company will start building the plant upon grid connection, expected “no earlier than” the fall of 2011. Arise Windpower, which listed its shares on Nasdaq OMX Stockholm in March, aims to expand wind capacity on the island to about 50 megawatts, Nygren said. Arise is the only wind company listed on Nasdaq OMX Stockholm. The Swedish wind company Eolus Vind AB is listed on the city’s alternative market, OMX First North.

Arise also signed an agreement on Sept. 24 with Svevia AB, a Swedish construction company, for land and infrastructure works to accommodate Arise’s 250 onshore turbine expansion by the end of 2014. The work is expected to cost 800 million Swedish kronor ($117 million), Arise said in a statement.

To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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