BioTherm Energy to Sell Controlling Interest in Portfolio of Operating South African Solar, Wind Power Plants
SunEdison to acquire 60 percent interest in BioTherm’s Round 1 portfolio, which has a combined gross capacity of 48.5 MW
Johannesburg, South Africa (26 May 2015) – BioTherm Energy, a leading South African power producer backed by energy and resources-focused global private equity firm Denham Capital, announced that it has signed an agreement to sell a controlling interest in a portfolio of operating solar and wind power plants in South Africa which have a combined gross capacity of 48.5 megawatts (MW) to SunEdison.
The global solar energy company will purchase 60 percent of the interest in BioTherm’s Round 1 portfolio, consisting of 3 operating assets. The power plants are contracted under 20-year fixed-price power purchase agreements (PPAs) with Eskom, South Africa’s largest state-owned power utility. The PPAs have a weighted average contract term of 19 years.
The transaction is expected to close in the near future, subject to review from the Department of Energy of the Republic of South Africa and normal closing conditions. As part of the agreement, SunEdison will assume management responsibilities for these acquired power plants beginning one year after the transaction closing date.
BioTherm’s other operations, which include developing, financing and constructing an extensive project pipeline across Africa, including its Round 4 assets in South Africa as well as 74MW of preferred bidder projects across the rest of Africa, will continue as usual.
About BioTherm Energy
BioTherm Energy (Pty) Limited (BTE) is an Independent Power Producer (IPP), focused on wind and solar project development and investment across the African continent. BTE enters into Power Purchase Agreements (PPA) with state utilities, large corporates, intensive energy users, and governments, if required. The company is vertically integrated in its approach towards project development and owns and operates its facilities. The company is backed by Denham Capital Management LP who has more than US $7.9 billion of assets under management. They have committed US $150 million to the BioTherm platform to develop and acquire a pipeline of renewable energy projects.
BTE has garnered many “first” time achievements in the African renewable industry:
- First IPP to secure project finance for a renewable energy project in South Africa (2010);
- First IPP to register a Clean Development Mechanism project and successfully monetise carbon credits;
- First and only South African IPP to be awarded three 20 year PPA’s in the first round of the South African Renewable Energy Independent Power Procurement Programme; and
- First IPP to be selected as a preferred bidder in Zambia
Additionally, BTE has an extensive project pipeline across Africa, with over 1.6GW of projects being advanced stage projects, having their environmental authorisations in-hand. BTE, which also recently secured 251MW of projects in Round 4 of the Renewable Energy Program from the South African Department of Energy, is closely aligned with the goal of expanding the role of renewable energy not just as an energy source, but as an integral part of the economic, environmental and social aims of Africa.
About Denham Capital
Denham Capital is a leading energy and resources-focused global private equity firm with more than $7.9 billion of invested and committed capital across seven fund vehicles and offices in London, Boston, Houston, São Paulo and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving power generation, oil and gas, and mining, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.
On Behalf of BioTherm Energy
For interviews: Jasandra Nyker, CEO, firstname.lastname@example.org; Tel 011 367 4600