AGL Energy (ASX:AGK) Sells Hallett 4 Wind Farm to Japanese-Led Consortium

AGL Energy (ASX:AGK) said it has sold the 132.3 MW Hallett 4 wind farm to a Japanese-led consortium, make up of Marubeni Corporation (TYO:8002), Osaka Gas (TYO:9532) and APA Group (ASX:APA), and expects to realise a development fee of A$88 million from the transaction.

AGL will continue to operate and maintain the wind farm, as well as retain the rights to all Renewable Energy Certificates and electricity output until 2036. The Energy Infrastructure Investments (EII) consortium will take an active role in the monitoring of construction and operation of the facility.

EII has acquired Hallett 4 and will fund all remaining development and construction costs under project finance facilities established as part of the transaction. The sale relieves AGL from ongoing development costs of approximately A$160 million through to anticipated project commissioning in May 2011. The total construction cost for the project will be A$310 million.

EII will own the wind farm, while AGL will buy all of the electricity and Renewable Energy Certificates produced as well as operate and maintain the facility under long term fixed cost arrangements.


Related Companies

Osaka Gas Co., Ltd
       

Marubeni Corporation
       

APA Group
       

AGL Energy Ltd