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ERG, Lukoil Venture Buys 84-Megawatt Wind Development in Romania

Lukerg Renew, a venture between Italy’s ERG SpA and Russia’s OAO Lukoil, bought an 84-megawatt wind development in Romania from Santarelli Costruzioni SpA that will cost 135 million euros ($178 million) to build.

Lukerg Renew plans to start construction at the site in the Tulcea region early next year with commercial operation in the first half of 2014, Milan-based ERG said in a statement. Terms weren’t disclosed.

The company plans to fund the project with a long-term loan from the European Bank for Reconstruction and Development, currently undertaking due diligence. The loan will be non-recourse, where the lender can recoup payments from the venture’s profits.

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