Danish state-owned gas and power utility Dong Energy has signed an agreement to buy 100% of the shares of Sweden's Storrun Vindkraft, a wind power project company.
Storrun Vindkraft holds rights for the construction of a 30MW wind turbine project in Sweden. The project is located approximately 150km northwest of Ostersund in the municipality of Krokom in Jamtland.
All official approvals and construction permits for the project are in place, but an optimization of the wind program’s framework is needed before an investment decision can be taken in mid-2007. The commissioning of the project is expected at the end of 2008 and the overall capital expenditure is expected to be DKK300 million.
Storrun Vindkraft’s former owner was Borevind, a listed investment company within renewable energy. Borevind will retain an option to buy back 20% of the company. Borevind will also assist Dong in the continued project design work.