Wind-farm developer Renewable Energy Holdings Plc (REH.L) said on Friday it signed a non-binding deal of intent to buy PVStrom Energy Systems GmbH & Co KG's photovoltaic development assets in Sicily, Italy for an undisclosed amount.
Renewable Energy and PVStrom plan to create a new company (Newco) in Italy. Renewable Energy will hold 90 percent of the new company, while PVStrom will hold the rest.
"PVStrom's current development portfolio of projects totals some 18MW (megawatt) of land options granted or land acquired, all in the Sicily region of Italy, with the medium term target being a developed portfolio of some 50MW and will be injected into Newco," Renewable Energy said.
The company said it expects to enter into a binding agreement by the end of June.
The company, which agreed to sell its wave energy patent portfolio — known as CETO — to Australia's Carnegie Corp Ltd (CNM.AX) earlier this month, noted the successful fundraising of A$5.75 million ($4.5 million) by Carnegie and said this ensures the continued development of CETO as it moves closer to commercialisation. [ID:nBNG400015]
The deal involved one condition that Carnegie have enough funds to cover the current CETO operating budget of about A$2 million at completion, Renewable Energy said.
"We look forward to completing the CETO transaction with them in September," it added.
Australia-based Carnegie has developed a method of using energy captured from passing waves to generate high-pressure sea water.
The CETO — named after a mythical Greek sea creature — pumps and buoys are located under water, differing from some other wave power methods, for example, those that sit on the surface.
