Solar Millennium AG and OHL Industrial jointly take over planned Spanish 50 megawatt power plant Arenales from Fotowatio Renewable Ventures
Erlangen, Madrid 13 April 2011 Solar Millennium AG (ISIN DE0007218406) took over the project company of the planned 50 MW parabolic trough power plant Arenales from Fotowatio Renewable Ventures together with OHL Industrial, a division of the Spanish construction group Obrascón Huarte Lain, S.A. (OHL). Both companies each acquired 50 percent of the shares. With this transaction the Solar Millennium Group is instrumental in the development and realization of a fifth solar thermal power project after the Andasol 1- 3 and Ibersol projects in Spain.
OHL Industrial is scheduled to take on the construction of the power plant as the contractor for Engineering, Procurement and Construction (EPC) and Solar Millennium will take the responsibility as project developer by its Spanish subsidiary Milenio Solar Desarrollo de Proyectos. The project entry also provides for the technology subsidiary Flagsol GmbH, by order of the EPC contractor to take on responsibility for the construction of the thermal storage and heat transfer fluid system as a sub-contractor. Both companies plan to start construction already in the 2nd quarter of this calendar year and simultaneously close the financing for the power plant.
Dr. Christoph Wolff, CEO of Solar Millennium: “The Arenales project is an important milestone for the further strengthening of our market position in Spain. At the same time, this purchase is part of our strategy of further broadening and perpetuating our business model with several smaller projects and a higher portion of EPC services. Furthermore the cooperation with OHL Group offers a lot of potential for the future.”
The project has already been preregistered by the Spanish government. The remuneration of the power generated is thus secured in accordance with the Spanish feed-in law for renewable energy. The power plant is scheduled to feed electricity into the Spanish grid as of 2013.
Christian Beltle, member of the Executive Board responsible for the project development for the Spanish market, adds: “The project shows that the Spanish market holds significant possibilities in store for us. Together with our partner OHL Industrial, we are very confident that we should rapidly close bank financing for the project using Andasol 1 and 2 as a model. After the successful close of financing negotiations, we plan to get more investors involved in the project.”
Arenales is to be built near the city of Morón de la Frontera in Seville province in Andalusia. The plant will supply some 100,000 people with climate-friendly electricity. Due to a thermal storage this power plant will also allow upon completion to supply solar power on a reliable basis after sunset.
The purchase price was not disclosed.
About Solar Millennium AG:
Solar Millennium AG, Erlangen, is an international company in the renewable energy sector, with a focus on solar-thermal power plants. Together with its subsidiaries and associates, the Company specializes in Parabolic Trough power plants and has managed to take a globally leading position in this field. Solar Millennium strives to further extend its expertise in the area of solar-thermal power plants with the aim of achieving and securing sustainable technology leadership. As such, the Company covers all important business sectors along the value chain for solar-thermal power plants: from project development and financing to the technology and the turnkey construction and operation of power plants. In Spain, Solar Millennium has developed Europe's first Parabolic Trough power plants, these were realized with partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts: the current regional focus is on Spain, the US, India, China, the Middle East and North Africa.
About OHL Industrial:
OHL Industrial was created recently by the OHL Group in Order to offer comprehensive services to clients within the industrial sector, in the capacity as EPC project contractor. In harmony with the group´s policy, OHL Industrial has a clear international vocation and is supported by professionals who boast vast international experience. OHL Industrial works closely with its clients, offering them the most economical solutions for their projects, including the possibility of long term concession. The main areas of activity of OHL Industrial are: Oil & Gas, Refinery, Petrochemicals, Power, Chemistry, Mining, Cement and Metallurgy. The services in EPC projects include: Feasibility studies, Engineering, Procurement, Logistics, Construction, Commissioning, Project Management, O&M, Quality, HSE and Financial Solutions.
About solar-thermal power plant technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a Parabolic Trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.