Banco Santander SA (SAN) plans to take a 90 percent equity share in a A$250 million ($256 million) wind farm developed by CBD Energy (CBD) Ltd. in New South Wales, Australia.
CBD Energy will hold the remaining 10 percent in the Taralga project, which will produce enough electricity to power 40,000 homes a year, the Sydney-based renewable energy developer said today in a statement. Taralga is Madrid-based Santander’s first Australian wind farm, according to CBD.
The project partners are “well advanced” in raising debt for the 106.8-megawatt venture, which has investment costs of about A$250 million. The project is completing arrangements with a preferred wind turbine supplier, according to the statement.
TRUenergy Holdings Pty Ltd., the Melbourne-based electricity company, agreed to buy all the power produced by the facility.
CBD said in a statement yesterday that the power purchase agreement with TRUenergy will deliver about A$300 million of “off-take value” to the project. Taralga, with development approval for 51 turbines, is expected to be completed in 2014, according to CBD.
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