Vestas is continuing in its strategy to diversify beyond its traditional wind turbine business through the announced acquisition of a 25.1% stake in German renewables developer Sowitec.
The Danish wind turbine manufacturer also has the option to buyer the entire company within three years.
“With the acquisition of a minority stake in Sowitec, Vestas gains access to an independent development entity that strengthens our co-development portfolio and improves our solutions and capabilities in strategic markets in Latin America,” Vestas chief sales officer Juan Araluce said.
“Vestas is continuing to invest in solutions and capabilities that increase our ability to meet our customers’ evolving needs and to partner with them through the energy transition. ”
Sowitec since its foundation in 1993 has developed about 60 wind and solar projects across the globe with more than 2.6GW in capacity that are either already operating or under construction. Next to traditional wind and solar developments, the company has added projects such as floating solar PV, energy storage, green hydrogen and ammonia production.
With the acquisition, Vestas also intends to strengthen its hybrid power plant offerings, given the developer’s track record in solar PV projects. Hybrids are a key part of the OEM’s goal to develop sustainable energy solutions with wind at their core, it said.
“Together with our strong track record in emerging markets and our vast experience in developing utility-scale renewable energy projects, this partnership will help Sowitec grow faster and give us the chance to profit from Vestas’ worldwide experience and presence,” Sowitec chief executive Frank Hummel said.
On a stand-alone basis, Sowitec is expected to report 2018 consolidated revenues of about €30m ($33.9m), Vestas said.
The acquisition, which is subject to regulatory approval, is expected to be finalised during the second quarter of 2019 and will have no significant impact on Vestas earnings.