Aug. 1 (Bloomberg) -- Arise Windpower AB rose the most in more than four months after the power producer signed a contract to take over a project in northern Sweden that already has the necessary permits.
The shares jumped as much as 6.2 percent, the biggest intraday jump since March 16, and traded at 27 kronor as of 2:49 p.m. local time.
The project outside Ornskoldsvik covers 40 wind turbines, of which Arise initially plans to build 25 to 30, according to a statement today. The agreement is conditional on the resolution of some remaining issues with landowners.
Peter Nygren, chief executive officer of Halmstad, Sweden-based Arise, declined to comment on its investment until September, when the issues over matters such as land-use rights may be resolved. The company plans to have about 700 megawatts, or about 300 wind turbines, in operation or under construction by 2014.
The project may be financed using Arise equity and bank loans, he said by phone. The company has about 40 million euros ($49 million) to 50 million euros for new investments, he said. It plans to select a turbine supplier this year, he said.
“The acquisition of the project is in line with the company’s strategy to develop large wind farms in Norway and Sweden,” Arise said in the statement. “Detailed development plans are currently being drawn up and it is expected that the wind farm will be connected to the grid and go into operation by summer 2014.”
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