Vardar and Østfold Energi invest in Midtfjellet Vindkraft

02.09.2011

Vardar AS and Østfold Energi AS are each acquiring 25% of the shares in Midtfjellet Vindkraft AS from DONG Energy through wholly owned subsidiaries.

It has been agreed that Vardar and Østfold Energi will increase their stakes to 33.33% in connection with the acquisition through a new share issue. Fitjar Kraftlag, Vardar and Østfold Energi will thus become equal shareholders in the company.

Vardar and Østfold Energi's investment, which consists of the purchase price paid to DONG, new share issue and loan to Midtfjellet Vindkraft AS, will total around NOK 400 million. The investment will be divided equally between the two companies.

Fitjar Kraftlag has developed the project at Midtfjellet since the mid-1990s. In 2005, DONG Energy was selected as a partner for the further development of the wind farm. The company was granted a licence to develop up to 150 MW at Midtfjellet.
The Board of Directors of Midtfjellet Vindkraft AS approved the investment in phase 1 on 2 September 2011. Construction will start in September 2011. A 20 km long road and foundations for the installation of around 20 turbines will be constructed. The main construction period will last until July 2012. The actual installation of the windturbines will start in August 2012, and phase 1 is scheduled to be in full production by 1 January 2013. The annual production will be around 180 GWh. Phase 1 at Midtfjellet will be developed with aid from Enova.

Sunnhordland Kraftlag will build a new 300 kV transmission line from Børtveit in Stord to Midtfjellet simultaneously with the construction of the wind power plant.

After the establishment of a common Swedish/Norwegian certificate market, a decision will be made on the development of phase 2, which is approximately the same size as the first construction stage.

Vardar and Østfold Energi consider Midtfjellet to be a very good project that will strengthen the companies' focus on renewable energy. This is completely consistent with the prevailing Norwegian energy policy. It is satisfying that the cooperation with DONG Energy has made it possible to take over the project, and the two companies are looking forward to cooperating with Fitjar Kraftlag.

Contact persons
Vardar AS:
Managing Director Johannes Rauboti: +47 916 45 264
Director Kristin Ankile: +47 950 48 875

Østfold Energi AS:
Strategy Director Tommy Fredriksen: +47 908 41 297
Managing Director Rolf M. Gjermundsen: +47 908 51 901