Five years back, Danish project developer Global Wind Power saw France as the next big market, moved its main unit to Paris and sold a 51-percent stake of its French subsidiary to Fred Olsen Renewables.

That setup has now dissolved. The parties have sold Global Wind Power France APS to an undisclosed "leading French industrial company", informs Fred Olsen Renewables, which expects the sale to fetch a net proceed for EUR 46 million to be booked this quarter.

The sale includes a yet-unspecified shareholder debt amortization to Fred Olsen Renewables, which committed to supply credit for a six-year period in connection with its initial buy-in.

"Since [Fred Olsen Renewables, FORAS] acquired the 51-percent stake in 2016, FORAS has together with [Global Wind Power Europe, GWPE] and GWP’s management strengthened and positioned the company further. FORAS are now pleased to see that GWP will be taken to the next stage by the Buyer," Fred Olsen writes in the press release.

Human scale

However, the French subsidiary's accounts have shown that this strengthening was to little avail. Since Fred Olsen became involved, the French company has presented red bottom-line figures and last year showed a deficit of EUR 3.3 million, which put the last years' total loss at EUR -8.4 million. Meanwhile, the subsidiary's equity by late 2019 came to EUR -2.7 million.

Global Wind Power France primarily consists of greenfield project valuations – the company's main business angle. The value of these continuously increases and by last year were worth EUR 8.5 million. Although a sale hasn't been announced since the spring of 2018, when the 13.2 MW Vallée de l'Aa 2 installation was sold to Italian company ERG.

Instead, recent years of activity have been focused on a somewhat larger project, Lentefaye Sud at 114 MW, developed by Global Wind Power France. This endeavor was opposed by locals, after which the developer changed plans toward a new development of "human scale" in a partnership with German wind OEM Nordex. This project, Tersainly, entailed now more than ten wind turbines.

The project's first turbine tower was installed in January this year, while studies of the project will be completed during the course of this year. According to the company's timetable, an establishment license should be in place in 2022. Now, however, another owner will bring the project to completion.

English Edit. Daniel Frank Christensen

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