Dec. 5 (Bloomberg) -- Renovalia Energy, a Spanish developer of renewable-energy projects, established a 50-50 venture with U.S. private equity firm First Reserve Corp. to own and develop wind farms in Europe and North America.
First Reserve committed $150 million to the venture to boost growth, acquisitions and international expansion in both regions, it said today in a statement. The venture, Renovalia Reserve, will initially include the 259 megawatts in wind assets Renovalia owns in Spain and Hungary and more than 300 megawatts it’s developing in Canada, Romania and Spain.
The U.S. company’s deal with Renovalia, which canceled a planned initial public offering last year blaming volatile markets, follows its 300 million-euro ($403 million) investment two months ago in Abengoa SA, the Spanish developer of solar thermal plants and biofuels. Last year, First Reserve created a venture with SunEdison, a unit of MEMC Electronic Materials Inc., to own and develop photovoltaic plants.
Renovalia Reserve plans more projects in Europe and the Unites States, and Renovalia may build wind plants in other regions on its own, Pablo Zamorano, a spokesman for Renovalia, said by e-mail today.
The company, based in Madrid, operates 10 wind farms, six solar parks, one thermal solar plant and a mini-hydro facility across seven countries.
Earnings before interest, taxes, depreciation and amortization for the first nine months rose 28 percent to 76.5 million euros from the same period last year, according to the statement. Revenue was 140 million euros compared with 93 million euros.
Renovalia will manage the joint venture’s existing generating capacity and the promotion of new wind projects, it said. Juan Domingo Ortega, its current chairman, will also head the new venture.
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