Finavera Wind Energy has signed the agreements for the sale of its 10 percent equity interest in the 105 MW Cloosh Valley Wind Project in Ireland to SSE Renewables for €2.1 million.
The Cloosh Valley Wind Project was undertaken as a part of the Co-Development Agreement signed in 2010 between SSER, Coillte and Finavera Wind Energy. As per this deal a part payment of €8.4 million in consideration for a 90 percent interest in the Project was agreed, of which €1.26 million has been received. The remaining €7.14 million is expected by Q4, 2014.
The €2.1 million collected from Finavera’s remaining 10 percent equity sale in Cloosh Valley Project will be used to retire Company’s debt.
Beginning from 2005, Finavera faced the early stage risk development of the Cloosh Valley Wind Project. In 2010, SSER and Coillte joined as co-partners and the project started to gain lots of achievements. This resulted in receiving all big projects with full planning permission. The Cloosh Valley Wind Project is capable enough to arrange project finance this year. The €7.14 million payment to Finavera will be triggered by this achievement.
This transaction combined with the sale of 184MW, ladders Finavera to a sound financial position, opening new opportunities for investments in the renewable energy market. We are improving the balance sheet, reducing working capital requirements and performing due diligence on new opportunities in the renewable energy sector.