Motor Oil buys Fortress 240MW RES units, ELPE also a bidder

Petroleum company Motor Oil, a member of the Vardinogiannis group, has acquired a 240-MW wind energy portfolio from private equity fund Fortress for a sum estimated at 123.5 million euros, renewable energy market sources have informed.

The Vardinogiannis group yesterday announced this acquisition, comprised of 220 MW in existing wind energy units and a 20-MW wind energy project now under construction, without naming the seller.

Motor Oil was named the preferred bidder following a two-round tender staged by Fortress that included Canadian fund Cubico in the second round, the sources informed.

The majority of this portfolio’s wind farms are located in central and northern Greece.

Interestingly, fellow Greek petroleum company Hellenic Petroleum (ELPE) also participated in the tender but did not make it past the first round, the sources said.

Both Motor Oil and ELPE have set ambitious goals for the addition of RES units to their respective production capacities.

Motor Oil, which had set an objective to build a RES portfolio of more than 300 MW over a two-year period, is already there given its existing installed capacity – prior to this acquisition – which exceeds 100 MW.

Had ELPE added the Fortress wind energy farms to its portfolio, it, too, would have taken a big step towards achieving its RES objective, set at 500-MW. The group is currently developing a 200-MW solar farm in the west Macedonia area, northern Greece.

Fortress, represented in Greece by local associate Nostira, had bought the aforementioned portfolio in September, 2018 from the Libra group, headed by shipowner George Logothetis.

 

US investments in Greek RES sector rising, LNG imports up

New US investments in Greece’s RES sector are on the rise, the energy ministry has stressed following a meeting yesterday between Greek energy minister Costis Hatzidakis and the U.S. Ambassador to Greece, Geoffrey Pyatt, for a discussion on major energy project plans in the wider region and the related American investment activity.

U.S. companies such as ONEX, Black Summit, with support from DFC (International Development Finance Corporation), Quantum Energy Partners, National Energy, General Electric, Fortress Investment Group, Blink and Tesla are all currently pursuing investments in the Greek market.

Hatzidakis, the energy minister, expressed satisfaction over the level of foreign investments in Greece, noting U.S. participation has significantly increased, especially in the energy sector.

Last month, 547 Energy, an American renewable energy venture backed by Quantum Energy Partners, participated for a third time in a row in a RES auction staged by RAE, the Regulatory Authority for Energy, adding 107 MW in wind energy capacity to its Greek portfolio for a current tally of eight RES projects and 390 MW, the energy ministry noted.

National Energy is drawing American funds to develop wind and solar energy projects in Greece with a total capacity of 270 MW, the statement added.

Also, the energy ministry noted, General Electric has supplied equipment for a wind energy farm in Fokida, west of Athens, a project being partially financed by the Fortress Investment Group; Blink recently began an investment plan in the electromobility sector, for rechargers and other equipment; while Tesla, a producer, amongst other things, of electric vehicles, recently announced a plan to expand its operations into Greece.

During their meeting, Hatzidakis and Pyatt also discussed the partnership between Greece, Cyprus and Israel, plus the U.S.

The progress of work at the Greek-Bulgarian IGB gas pipeline, whose geostrategic importance was stressed by the Greek minister, was also addressed. A closer association with Bulgarian contractors is being sought for the project’s punctual delivery.

Work on the Alexandroupoli FSRU in northeastern Greece is progressing at a satisfactory pace, the two officials agreed, noting the project will have a positive impact on geostrategic and energy matters.

The U.S. supplied nearly half of the 2,651,903 cubic meters of LNG imported into Greece in the first half of 2020, almost quadruple the amount supplied by America to Greece during the equivalent period a year earlier.