2008-10-29
Solar Millennium sells stake in Andasol power plants to solar funds - expected annual result according to plan
Erlangen, 29.10.2008 Solar Millennium AG (ISIN DE0007218406) has reached an agreement regarding the sale of shares in the Andasol power plants to a solar fund. The transaction is subject to board approvals and is therefore currently conditional. It has been agreed not to disclose details prior to the approval of the governing bodies.
When added to the results of the project development, technology and plant construction business sectors, this sale secures the envisaged net profit of Solar Millennium for the current fiscal year of € 18 million.
With the fund concept, the Company has chosen an instrument which, beyond the classic ways of financing, gives the Group the necessary flexibility and extended room for manoeuvre against the background of the profound financial market crisis. For its investors, this solar fund, the largest of its kind worldwide at present, offers the opportunity to participate in the operation of the first parabolic trough power plant in Europe and therefore to directly promote sustainable and climate-friendly energy generation.
Christian Beltle, CEO of Solar Millennium AG: "By this innovative concept we have adapted to the modified financial market conditions within a short period of time. With a view to our well equipped project pipeline, the financing via funds also provides an excellent alternative for our future projects."
Thomas Mayer, CFO of Solar Millennium AG, adds: "Solar-thermal power plants offer a safe investment with high returns backed up by a governmentally guaranteed feed-in tariff. As a consequence, the solar fund we created represents an advantage for both the development of solar-thermal power plants and the long-term investors seeking a solid investing opportunity." The preliminary results of the Group will be published in December.
About Solar Millennium AG:
Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with a main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specialises in parabolic trough power plants - a reliable, proven technology in which the company has a worldwide leading position covering all major business sectors along the value chain for solar thermal power plants from project development over technology and turn-key construction to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever parabolic trough power plants, which are already under construction. Further projects are planned worldwide with an overall capacity of over 2,000 Megawatts. The current regional focus is on Spain, the USA, China and North Africa. In addition, the company develops solar chimney power plants aiming to make this technology ready for the market.
About solar thermal power plant technology:
Solar thermal power plants generate electricity using thermal energy converted from solar radiation. In a parabolic trough power plant, the solar radiation is concentrated by troughshaped mirrors onto a pipe in the focal line of the collector and absorbed by a heat transfer fluid which, thus, heats up to about 400°C. The heat is transported by the fluid to the power block where it generates steam by means of a heat exchanger. As with conventional power plants, the steam powers a turbine to generate electricity. And by integrating a thermal storage, electricity can be supplied on demand, even after sunset.
You can download the press release here
