Enel Green Power enters the German renewables market with the acquisition of a 78,6% stake in the share capital of Erdwarme Oberland GmbH ('EO') from Erdwarme Bayern GmbH & Co. ("EB"), a company specializing in development of geothermal projects in Bavaria.
The company communicates this in a note, underlining that the acquisition was carried out through the issue of new shares in EO for a total consideration of 22 million euros which will cover the initial investments required by the project.”This acquisition is very important – declared Francesco Venturini, managing director of Egp – as it opens the doors to an important and stable renewable market like the German one for Enel Green Power. We intend to build a solid platform for future investment opportunities in the country, both in the geothermal sector and in others, contributing to the achievement of the target on the share of renewables in the European energy portfolio”.
EO has recently developed a project for the construction of a geothermal plant, with a maximum expected capacity of approximately 26 MW. The project, located near Weihleim, approximately 50 km southwest of Munich, will be developed, in consultation with local communities, from a mineral exploration concession, granted by the Bavarian Ministry of Economic Affairs, Media, Energy and Technology, valid for 3 years starting from December 2015. EO will begin geological exploration activities during 2016.
