GE invests in Theolia wind power

French wind farm companyTheoliahas signed an agreement withGE Energy Financial Serviceswhich will increase Theolia’s wind generation portfolio in Europe and fund growth. It will include an alliance which the firms anticipate will give access to additional wind project development opportunities.

In an assets-for-equity swap, Theolia will acquire GE Energy Financial Services’ European wind farms, which have a total power generation capacity of 165MW. In return, GE Energy Financial Services will receive 5,250,000 new Theolia shares. Through this transaction, Theolia strengthens its operating position in the German market and givesNatenco, Theolia’s subsidiary in Germany, additional growth potential.

GE Energy Financial Services will support Theolia’s growth strategy by way of a capital contribution of €20m in return for 1,212,000 new shares and, as part of the agreement, will also be granted warrants to acquire 3,000,000 additional Theolia shares. As a result, GE Energy Financial Services will have the opportunity to increase its ownership in Theolia up to 22 per cent of the company’s share capital.

GE Energy Financial Services’ German wind parks, located at Alsleben, Krusemark, Grossvargula and Zabelsdorf, have a total installed capacity of 165MW. They are composed of 66 REpower 1.5MW turbines and of 44 GE 1.5MW turbines. This combined portfolio produces enough power to provide for the needs of 70,000 homes and reduces greenhouse gas emissions by 350,000 tonnes a year, compared to fossil fuel power generation.

In wind farm development, GE Energy Financial Services will work with Theolia on a preferential basis in the European Union to bring additional growth opportunities to Theolia. Theolia will also benefit from GE Energy Financial Services’ energy industry and financial structuring expertise as well as access to project finance and GE’s energy products and services.