Woolnorth wind farm partnership finalised

A partnership between Hydro Tasmania and a leading Chinese renewable energy business was formalised today, with the signing of a shareholders’ agreement in Beijing.

The agreement will guide the joint ownership, management and operation of Hydro Tasmania’s Woolnorth wind farms, Bluff Point and Studland Bay, in north-west Tasmania.

Under the arrangement, Shenhua Clean Energy Holding Pty Ltd (SCE) will take a 75 per cent share in the wind farms, with Hydro Tasmania retaining the remaining 25 per cent share. SCE has paid $88.6 million for the share.

SCE is 75% owned by Guohua Energy Investment Corporation and 25% owned by Guohua’s sister company Shenhua Hong Kong Ltd.  Guohua and Shenhua Hong Kong have established the new entity to manage their Australian wind interests.

The transaction will see $30 million in tax returned to the State of Tasmania from the sale process, $208 million of debt removed from Hydro Tasmania’s balance sheet, and will facilitate financing of the $400 million Musselroe Wind Farm project.

The Deputy Premier and Minister for Energy and Resources Bryan Green took part in the formal signing ceremony this morning in Beijing.

“This is an important strategic partnership that builds on Tasmania’s standing as Australia’s renewable energy powerhouse,” Mr Green said.

“Importantly, there are many Chinese companies like Guohua looking for investment opportunities and we want to ensure that we are attracting investment to our State that will help grow jobs in Tasmania.”

The Woolnorth partnership is SCE’s first investment in the renewable energy sector in Australia. Hydro Tasmania and SCE are seeking to develop a Strategic Co-operation Agreement to foster closer co-operation as they seek to develop other clean energy projects in the Australian and international renewable energy markets and leverage their respective strengths.

Hydro Tasmania chairman Dr David Crean described SCE as a first-class strategic partner for Hydro Tasmania and the state.

“One of SCE’s parent companies, Guohua, is one of the world’s largest wind developers and brings a wealth of expertise in the renewable energy sector and a strong interest in working with us on other renewable energy projects,” he said.

“We look forward to the prospect of working with SCE on Woolnorth, Musselroe and future projects.”

The transaction has been approved by Hydro Tasmania’s shareholder Ministers, the Australian Taxation Office and the Foreign Investment Review Board.

Following financial close on the transaction, there will be a six-month exclusivity period for Hydro Tasmania to negotiate SCE’s involvement in the 168 Megawatt Musselroe Wind Farm currently being built in the State’s north east. Hydro Tasmania expects more than 200 people will be directly working on the project during the 18-month construction phase.

For more information please contact Sam Meyer on 6230 5746.

Background information

Woolnorth wind farms

Bluff Point (65MW) 37 turbine wind farm, commissioned in 2004, located approximately 47km west of Smithton

Studland Bay (75MW) Commissioned in 2007, the 25 turbines are located on a site seven kilometres south of Bluff Point wind farm.

Both formerly owned by Roaring 40s in a 50-50 joint venture between Hydro Tasmania and China Light and Power.

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Musselroe Wind Farm

Greenfield wind farm development. Construction has begun on the 168MW project, which is expected to be completed and operational by July 2013.

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