October 7, 2008

AMEC Sells Wind Energy Arm to Sweden’s Vattenfall


AMEC has sold its wind energy arm to Sweden's Vattenfall for GBP126.6m Vattenfall, Europe's fifthlargest electricity producer, said the purchase would expand its presence in the UK market and said it and AMEC have also entered into a strategic alliance to pursue lowcarbon energy projects.

The move comes just six months after the Scottish Government turned down an application by Lewis Wind Power, a consortium of AMEC and British Energy, to build a wind farm in the Hebrides which the companies said would have generated 650MW of renewable energy.

Vattenfall aims to produce 50 terawatt hours from wind power by 2030, a level that would allow it to provide renewable electricity to 10 million households.

The company mainly operates in Sweden, Germany, Denmark and Finland but sees the UK as its next major market It is keen to participate in round three of the Crown Estate's offshore wind programme.

The estate has launched a tender process for leases in nine areas around the coast which could see 3000 turbines built in British waters up to 2030.

Vattenfall already owns the Kentish Flats offshore wind farm and is rying to buy Eclipse Energy which is developing other UK projects.

It is more established overseas with a 60per cent stake in Horns Rev, the world's largest offshore wind facility off Denmark's Jutland Peninsula and owns all of the world's third largest offshore wind farm, Lillgrund, between Sweden and Denmark.

Originally published by Newsquest Media Group.

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