Renovalia Energy and First Reserve Create a New Joint Venture Company to Own and Operate Wind Projects in Europe and North America

-- The new joint venture company will be called "Renovalia Reserve" and will have 295 MW capacity in operation, principally in Spain and a 300 MW pipeline in Canada, Romania and Spain.

-- First Reserve has committed US$150 million for organic and acquisition growth in North America and Europe.

-- Renovalia Energy will continue to oversee the management of the joint venture's existing operating assets, and the promotion of new wind projects.

-- Renovalia Reserve will further support Renovalia's core strategy of growth and international expansion.

News provided by

First Reserve

Dec 05, 2011, 03:00 ET

MADRID, Dec. 5, 2011 /PRNewswire/ -- First Reserve Corporation ("First Reserve"), one of the largest energy industry private equity and infrastructure investors worldwide, and Renovalia Energy, a leading international renewables company, have established a joint venture, Renovalia Reserve, to own and operate wind projects in Europe and North America. First Reserve has committed US$150 million to the joint venture.

The long-term agreement supports Renovalia Energy's growth and international expansion plans, allowing it to become one of the leading renewable energy companies in the global market, with a presence in seven countries.

First Reserve identified Renovalia Energy as its partner due to its deep experience in the wind industry and its broad renewable energy sector platform, as well as its solid financial track record and strong growth potential.

During the first nine months of 2011, Renovalia Energy's EBITDA grew by 27.5% compared to the same period last year, to 76.5 million Euros. Its turnover was 140 million Euros by Q3 2011, compared to 93 million Euros in the same period 2010.

Renovalia Energy's Chairman, Juan Domingo Ortega, has been appointed chair of Renovalia Reserve. Renovalia Energy will manage the new company's existing generating capacity and the promotion of new wind projects.

At an initial total capacity of 559 MW, Renovalia Reserve will initially comprise Renovalia Energy's 259 MW of operating wind assets in Spain (244 MW) and Hungary (15 MW), and its wind pipeline in Canada, Romania and Spain, with total capacity of more than 300 MW.

"Securing a long term, established partner such as First Reserve, which is a preeminent energy infrastructure investor, is an important development in Renovalia Energy's goal of becoming one of the world's leading companies in the renewable energy sector," said Juan Domingo Ortega, Renovalia Energy's Chairman.

John Barry, Director, First Reserve Corporation said, "Renovalia Energy is a great partner to have in the wind energy industry. The combination of its track record and expertise, and its potential for significant international growth is extremely attractive for us."

About Renovalia Energy

Renovalia Energy is a company specialized in the promotion, engineering, construction, exploitation and sales of electricity generated from sources of renewable energy (wind, solar, photovoltaic, concentrated solar photovoltaic, thermoelectric and mini-hydraulic).

The Company, which operates in seven countries (Spain, USA, Canada, Mexico, Italy, Romania and Hungary) has over 570 MW in operation and under construction, distributed over ten wind power farms, six photovoltaic solar farms, one mini-hydro plant and one thermal solar plant.

It has a project investment of over 2,400 MW, diversified from a geographic and technological point of view.

Today, Renovalia Energy is one of the reference companies in the sector and has one of the most balanced energy mixes in the market, which has made it into one of the most important producers of clean energy.

The Company has always maintained a corporate strategy of continuous investment, with the purpose of reducing the costs of renewable technologies and its impact on the environment, as well as increasing its presence in the market, both nationally and internationally.

In 2010, Renovalia Energy was able to halt the emission of 110,744 tons of CO2 into the atmosphere, which equals the carbon dioxide produced per year by 232.000 households or 62.000 cars.

For additional information, please visit Renovalia's website at www.renovalia.com

About First Reserve

With over $23 billion of raised capital dedicated exclusively to the energy and natural resources industries, First Reserve is a premier private investment firm, making both private equity and infrastructure investments throughout the energy value chain. For 28 years, it has invested solely in the global energy industry, and has developed a preeminent franchise, utilizing its broad base of specialized energy industry knowledge as a competitive advantage. The firm is currently investing its most recent private equity fund, which closed in 2009 at approximately US $9 billion and its most recent infrastructure fund, which closed in 2011 at approximately US $1.2 billion. First Reserve invests strategically across a wide range of energy industry sectors, backing talented management teams and building value by building companies.

For additional information, please visit www.firstreserve.com

For First Reserve media inquiries, please contact:

Michael Henman
Cubitt Consulting
Tel: +44 (0)20 7367 5100
E-mail: [email protected]

Caroline Harris
CJP Communications
Tel: +1 212-279-3115; ext. 222
Email: [email protected]

For Renovalia Energy media inquiries, please contact:

Pablo Zamorano
Ignacio Ruperez
Burson-Marsteller
Tel: 91 384 67 56
Tel: 679 19 59 69
Tel: 647 84 14 84
Email: [email protected]
Email: [email protected]

SOURCE First Reserve