Renewable energy company Hydro Tasmania has concluded an agreement with China-based Shenhua Clean Energy Holdings (SCE) to divest 75% stake in the 160 MW Musselroe wind farm for $89m.
Located in north-east Tasmania, development of the $394m facility began in December 2011 and is expected to be fully operational by 1 July 2013.
The transaction also involves a project financing facility of A$280m ($291m), led by the National Australia Bank.
SCE is 75% owned by Guohua Energy Investment, while Guohua’s sister company Shenhua Hong Kong owns the remaining interest.
Hydro Tasmania chairman Dr David Crean noted that SCE’s partnership is significant for the company as well as the state of Tasmania.
"Guohua, the main SCE parent company, is one of the world’s largest wind developers and brings a wealth of expertise in the renewable energy sector.
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By GlobalData"Guohua has more than 4200 MW of wind energy capability operating in China," highlighted Crean.
The Musselroe wind farm will be managed under the joint venture arrangement established by Hydro Tasmania and SCE in February 2012.
This arrangement currently involves joint ownership, management and operation of the Woolnorth wind farms – at Bluff Point and Studland Bay.
Guohua chairman Jianning Xie noted that SCE and Hydro Tasmania have synergy and the strategic co-operation will create significant long-term value.
"We are pleased with the successful operation of Woolnorth and very happy to work with Hydro Tasmania again as partners in the Musselroe Wind Farm," Xie added.
Following the closure of equity and financing arrangements, Hydro Tasmania’s debt will be reduced by $270m.
