Econergy International buying Brazil wind farm

Boulder, Colo., renewable power producer Econergy International announced this week it would buy the 18 megawatt Pedra do Sal wind project in Brazil and expand it with an additional 20 wind turbines.

Econergy said it would pay $460,000 for the wind farm, located in the state of Piauí, with an additional $2.8 million to be paid at the end of 2011.

"This acquisition marks our third renewable energy project under construction in Brazil," said Econergy CEO Tom Stoner.

The company also signed an agreement with Enercon's Brazilian unit, Wobben Windpower, to install twenty 900 kilowatt wind turbines at the site, doubling the wind farm's capacity.

"Pedra do Sal is the first project in Brazil which will use Enercon's E-44 wind turbine, made in Brazil, and designed to handle prevailing winds at strong wind sites," said Pedro Angelo Vial, CEO at Wobben Windpower.

Germany's Enercon has production facilities in Brazil, Sweden, India, Turkey and Germany.

Econergy expects the wind project to generate 61,000 megawatt hours per year, with a capital cost of $50 million.

The company said it already has a power purchase agreement in place with Eletrobrás, Brazil's government-owned electric company, for a 20-year term at a starting tariff of $114 per megawatt hour.

Econergy said Pedra do Sal should start commercial operations by January 2009.

With this latest deal, Econergy said it now has three projects in construction and one project in operation.

Once fully operational, the total generation from the four projects will be over 1 million megawatt hours, according to the company.

Econergy said it remains on target to deliver 1.4 million gross megawatt hours in 2009.

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