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.
Germany’s DWH (Deutsche Werte Holding AG), driven by favorable prospects seen in Greece’s solar energy sector, has joined Greek holding company Maximus Terra, involved in various local RES sector projects – solar, wind, biomass and biogas energy – since 2010.
During these years, Maximus Terra has collaborated with major groups such as Italy’s Enel, as well as Libra Group, headquartered in the USA.
DWH was drawn to the Greek market by solar energy projects with a total capacity of 200 MW currently being developed. The German company plans to co-finance these.
DWH is interested in license trading as well as project development. It estimates that a 25-MW station has the potential to generate revenues, from electricity sales, of up to two million euros per year.
Depending on the strategy it chooses to follow, the German company is anticipating short-term profit from license trading activity or annual profits of roughly 17 million euros through the development of photovoltaic systems.
The Libra Group, an international corporate group active in energy, aviation, hospitality, real estate, shipping and diversified investments that is wholly-owned by the Logothetis family, is selling a portion of its Greek RES interests.
According to energypress sources, the group intends to hold on to about one third of its local PV investments and one quarter of local wind energy interests.
A Chinese firm is believed to have secured the PV units placed for sale by the Libra Group while a powerful US fund, already prominently placed in the Greek market, is expected to add the group’s wind energy units to its portfolio.
Interestingly, Euroenergy, the group’s company handling renewable energy investments in Europe, has spent the past three to four years working to strengthen its portfolio through acquisitions of developed wind parks and project licenses.
In 2016, Euroenergy bought three wind parks possessing a total capacity of 120 MW from French group EDF.
The Libra Group is expected to use the proceeds of the sales to cover loans.
Euroenergy maintains a prominent RES portfolio in Greece, Romania and Latvia. The Libra Group’s investments in Greece also include the Grace boutique hotel chain as well as a series of investments held independently and with partners.