10 Jun 2010

Funding to be sought for windfarm

10:50 pm on 10 June 2010

Windflow Technology is considering raising money from investors to fund a 13MW windfarm near Wellington, after Mighty River Power pulled out of the construction deal.

Resource consent for the project had been approved, but Mighty River says, after careful consideration, it's decided not to proceed with the construction phase. Mighty River owns 20% of shares in WTL.

Mighty River general manager generation Fraser Whineray says he's still keen to see the farm built, but the two companies are discussing alternative models, such as a power off-take arrangement, where Windflow builds the farm and sells the electricity to Mighty River.

Mr Whineray says this option would maximise the strength of each company's expertise.

Mr Whineray says Mighty River and Windflow are also discussing how the project will be funded, including borrowing from banks or through a possible equity raising.