Hydro Tasmania and China-based renewable energy firm Shenhua Clean Energy (SCE) have extended their partnership to include the $394m Musselroe Wind Farm, currently under construction in north-east Tasmania, Australia.
Both firms have agreed to extend their existing arrangements involving the joint ownership, management and operation of the two Woolnorth wind farms: Bluff Point and Studland Bay in north-west Tasmania.
SCE, which paid $89m for its share in the joint venture, will own a 75% stake in the 168MW Musselroe Wind Farm upon completion of the deal.
Construction on project is nearing completion, and it is expected to be fully operational by 1 July 2013, said Hydro Tasmania.
Local firm Haywards constructed the turbine towers and Hazell Bros undertook the civil engineering works.
Guohua Energy Investment owns 75% of SCE, while its sister company Shenhua Hong Kong holds the remaining 25%.
Hydro Tasmania chairman Dr David Crean commented on the deal; "Guohua, the main SCE parent company, is one of the world's largest wind developers and brings a wealth of expertise in the renewable energy sector. Guohua has more than 4,200MW of wind energy capability operating in China."
Crean also noted that the completion of the equity and financing arrangements will now reduce Hydro Tasmania's debt position by about $270m once the transaction is complete.
The transaction includes a project financing facility of AUD280m ($291m), and the facilities will include a $140m, 18-year tranche from Denmark-based export credit agency Eksport Kredit Fonden (EKF).
The remaining $140m, five-year tranche will be financed by NAB, Sumitomo Mitsui Banking, Bank of China, Industrial and Commercial Bank of China and Credit Industriel et Commercial based in Paris.
Image: SCE will acquire 75% stake in the 168MW Musselroe Wind Farm, while Hydro Tasmania will hold the remaining 25% interest. Photo: Courtesy of Hydro Tasmania.