Airtricity in EUR1.6bn wind farm deal

IRISH-BASED alternative energy company Airtricity is investing €1.6 billion in building the world's biggest wind farm in the Thames estuary.

Chief executive Paul Dowling also told The Irish Times that the company is gearing up to invest further in expanding its Irish operations.

The company, now owned by British utility Scottish and Southern Energy (SSE), said yesterday that it plans to build a wind farm with the capacity to supply power to around two million homes at Greater Gabbard in the Thames estuary off the Suffolk coast.

Airtricity is joining forces with global engineering group Flour to build the 540 megawatt (mw) wind farm. The company said yesterday that, once completed in 2011, it will be the world's biggest offshore wind farm.

In a statement, Airtricity said the proposal would require an investment of £1.3 billion (€1.6 billion).

According to a statement issued yesterday, a company called Greater Gabbard Offshore Winds, a 50/50 joint venture between Airtricity and Flour, has brought the project through its initial stages.

Flour has agreed to sell its stake in the joint venture company to Airtricity for £40 million in cash. The Irish company intends selling 50 per cent of the project later this year.

Wind farms do not generate electricity all the time as the wind is not always blowing at the right speed.

Airtricity said yesterday that weather records indicated that Greater Gabbard would produce power 40 per cent of the time. On this basis, industry calculations indicate it will have the capacity to produce enough electricity for just over two million homes.

Mr Dowling said Airtricity has been working on the project for four years.

He pointed out that its sale to SSE earlier this year made it possible for the Irish company to move ahead with the plans as its parent has a balance sheet strong enough to support the expansion.

He said the company was also pushing ahead in adding a further 100mw to the 300mw capacity it has in Ireland.

Mr Dowling added that the company intended to continue to expand its Irish operations.

"Over the next three to five years, we are looking at a further investment of €500 million to €750 million in Ireland," he said.