Joint venture for $80m windfarm

NZ Windfarms has signed a joint-venture agreement with Australia's Babcock and Brown and National Power for an $80 million windfarm at Te Rere Hau in Manawatu, it said yesterday.

The deal is subject to conditions, which must be satisfied within 30 days.

These include transfer to the joint venture of contracts and property related to the project held by NZ Windfarms, and completing a management contract for NZ Windfarms to provide management services.

Under the joint venture, NZ Windfarms retains a 50 per cent interest, and NP Power and Babcock and Brown Windpower share the other half.

Te Rere Hau plans to build a 97-turbine wind farm in stages on 243ha of land, which will continue to be farmed for cattle and sheep grazing.

The first five turbines were opened by Prime Minister Helen Clark this month. A further 14 turbines are scheduled for completion in the fourth quarter of next year.

When completed, the farm should produce 48.4 megawatts of power - enough to power 18,000 homes.

The site is on the western slopes of the northern end of the Tararua Ranges, facing the prevailing wind and next to two existing highly productive wind farms.

The two Australian companies signed a memorandum of understanding with NZ Windfarms last year.

The partners expect to realise carbon credits awarded to the project in 2004.

NZ Windfarms, a spin-off of listed turbine manufacturer Windflow Technology, listed on the NZAX alternative exchange in December last year.

Windflow Technology this month reported an annual loss of $2.2 million after tax.

NZ Windfarms shares last traded up 4c at $1.22. Windflow shares last traded at $2.74.

- NZPA