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Mighty River Power will spend around $7 million for a 19.95 per cent stake in Christchurch-based wind power turbine company Windflow Technology.
The two companies had also entered conditional arrangements under which Windflow would, subject to consents, build a proposed wind farm at Long Gully outside Wellington on Mighty River's behalf.
The wind farm was expected to have between 20 and 50 turbines.
Mighty River was seeking to add wind to its renewable electricity generation portfolio, with the aim of developing up to 500 megawatts of wind power by Windflow. Chief executive Geoff Henderson said the additional equity capital investment would enable Windflow to accelerate its development of new variants of the Windflow 500 wind turbine and entry into new market sectors.
"We are very pleased to have the Windflow 500 wind turbines technical and competitive advantages recognised in its selection by Mighty River Power as the basis of their entry into the exciting field of wind power."
Its twin-blade turbines stand 47m the highest point, less than half the height of the big European style machines in other parts of the country.
Windflow Technology is part way through supplying 60 turbines for the Te Rere Hau wind farm on land near Palmerston North close to the existing Tararua Wind Farm owned by Trustpower.
The Te Rere Hau wind farm is owned by a joint venture which includes NZ Windfarms Ltd, Babcock & Brown Windpower and NP Power.
Windflow shares were up $1.15, or 38.3 per cent, to $4.15 yesterday.
- NZPA, STAFF REPORTER
