Airvolution Clean Energy Limited (“ACE”) has announced today that it has acquired all the assets and rights for onshore wind farm development in the UK from Airvolution Energy Limited via a management buy-out. The new company, ACE, (still trading as Airvolution Energy and/or Airvolution) is wholly owned by the three senior managers, Richard Mardon, Gary Freedman and Matt Potter. There is no longer any connection with the private equity investor, ESB Novusmodus (managed by Greencoat Capital) and the energy utility, ESB group, will continue to develop, build, own and operate projects in the UK in its own right.
Simultaneously, a new project development funding partnership has been executed with Statkraft (UK) Limited supporting Airvolution’s future development activities with the goal of providing Statkraft with at least 300MW of low cost onshore wind projects, primarily in Scotland. Some 340MW of wind energy capacity across 12 projects, 30MW of which is consented, is already under option and/or exclusivity and ready to roll out under the new partnership. As with Airvolution’s historic (and now completed) ROC portfolio, a large proportion of the new project pipeline comprises acquisitions from under-funded developers or landowners seeking help with completing their projects or finding a route to market.
Richard Mardon, CEO of Airvolution commented; “Having successfully completed our eleventh ROC/FiT project over the past four years, all on time and within budget, I am delighted that those outstanding achievements have been recognized by an internationally renowned renewable company such as Statkraft. We strongly believe that onshore wind can be built in the windier parts of the UK and produce clean, reliable energy at a lower cost than any alternative. With Statkraft’s valuable support and long term strategic vision I am confident that many megawatts will be forthcoming from this partnership.”
David Flood, Managing Director of Statkraft UK Limited remarked; “We are delighted to have entered into a development partnership with Airvolution Clean Energy. The team at Airvolution has a strong track record, and will be able to identify, secure and develop excellent project opportunities on behalf of Statkraft.
Our focus on Scotland demonstrates our belief in the fundamental attractiveness of the onshore wind industry in Scotland, and its ability to deliver low-cost, low carbon generation while contributing substantially to the Scottish economy. As we have demonstrated on projects such as our recently completed Andershaw wind farm, next generation turbine technology can facilitate further cost reductions, and increased tip heights will play a critical role in this.
We believe the future of onshore wind in the United Kingdom to be very positive, and fully expect the UK government to grasp the opportunity for further onshore wind development through future CfD auctions. This can deliver known volumes of the most cost-effective generation technology available in suitable locations, while giving investors certainty and facilitating low cost of capital.”