Pacific Hydro shares jump on wind approval
Date: 16-Aug-02
Country: AUSTRALIA
Author: Michelle Nichols
The A$270 million ($145.9 million) project - which will be the largest wind farm in the southern hemisphere and one of the largest in the world - now needs endorsement from the Federal Environment Minister David Kemp for it to proceed. "This development will generate enough pollution free electricity to power a city the size of Geelong (about 200,000 people), reducing Australia's greenhouse emissions by about 800,000 tonnes per annum," Pacific Hydoro managing director Jeff Harding said in a statement. Pacific Hydro has said it expects phase one project to be generating electricity by June 2003. The entire project will see 120 wind generators built at Cape Bridgewater, Cape Nelson, Cape Sir William Grant and Yambuk in Victoria.
Harding said Danish wind turbine manufacturer NEG Micon would establish a factory in Portland for the project, as well as for wind projects throughout Australia and the Asia Pacific region.
Successful development of the Portland wind farm project would allow Pacific Hydro to cost effectively develop other sites, Harding said.
The company is estimating it will have at least 500 MW of wind generation capacity in operation by 2005.
ABN Amro electricity analyst Jason Mabee said he had a share price of A$4.50 for Pacific Hydro.
"Given the size of the project it is going to be the major driver of their earnings over the shorter term, so therefore it is clearly a positive for the company," Mabee said.
"There has been some negative press on wind farms over the past six months so maybe there was some doubt spreading that it wouldn't get approved, but this has allayed all these fears."
By midsession, Pacific Hydro shares had eased from their early highs to be up 23 cents or 6.7 percent at A$3.68.
The Victorian state government also released guidelines to help manage the continued expansion of wind farms whilst protecting sensitive environments. The state government said it hoped the guidelines will help facilitate up to 1,000 MW in proposed wind power development in Victoria by 2006.