Gamesa to invest big in renewables

Spanish wind turbine manufacturer Gamesa has bought stakes in two US clean-energy companies as it looks to invest up to ¤50 million in acquiring a further presence in clean technology developers over the next five years.

The company said in a statement that its investment strategy is aimed at diversifying its technology base in new renewable energy technologies to propel its long-term growth.

"We need to think about what the new renewable technologies will be," Chairman and CEO Jorge Calvet said last week. "We can't afford to be left behind."

Calvet said Gamesa plans to make these strategic investments through a corporate venture capital fund it has yet to establish, targeting wave and next generation photovoltaic technologies, together with energy storage, green mobility, energy efficiency and off-grid systems.

It plans to invest up to 50 million euros in the fund in the next five years to buy stakes in start-up or growth companies in the development of high potential growth clean energy technologies, initially focusing on minority holdings. Calvet said it is interested in companies that can benefit from Gamesa's expertise and add value to its wind turbine business. The company may also offer help with sales and marketing, sourcing suppliers and manufacturing.

The fund will take minority stakes in companies with the potential to become new Gamesa business units in the medium term, he said. The fund has already invested $5 million in two firms that make small-scale generators for remote areas.

Gamesa says it will look to acquire stakes in diverse clean technology companies as it takes a quarter-stake in US solar and water-pump manufacturer WorldWater & Solar Technologies and a 29 percent stake in renewable off-grid technology developer SkyBuilt Power. Gamesa paid $3 million for a 29-percent stake in SkyBuilt and $2 million for 25 percent of WorldWater & Solar.

The company boosted net income 63 percent to 13 million euros in the first quarter on international sales. Its investments in Brazil, India and China are reaping rewards after regulatory uncertainty shut down most development of wind parks in Spain. Gamesa may this year make no sales in its home market of Spain, which accounted for a third of revenue in 2009, Calvet said.

He added that Gamesa's turbine sales may be boosted by increasing demand next year from the US, the world's second-biggest market, which slumped in 2010. US developers may install seven gigawatts of new generators in 2012 compared with five gigawatts at most this year. The US accounted for eight percent of Gamesa's sales in the first quarter.

"I see some light at the end of the tunnel [for the US market]," he said. "There is a change of trend."

In a statement, the company said it would consider taking firms over in full by either adding them to its business as new lines or as sources of value through spin-offs on capital markets.

Gamesa added that it is determined to ensure medium- and long-term growth and leadership in the energy technology market in its wind business and in the added development of new renewable energy technologies that will capitalize on synergies with its existing manufacturing activities.

In October, the company said it intends to choose the United Kingdom as the worldwide center of its offshore wind energy business, and plans to invest up to 150 million euros there by 2014.

The offshore industrial plan calls for the creation of a center for offshore technology and the construction of one turbine blade manufacturing plant. Gamesa intends to conduct its offshore business' port logistics and turbine operation and maintenance services from different UK ports.

To meet projected growth in market demand in the medium and long term, the offshore wind industry requires new generations of larger-capacity marine turbines. To this end, Gamesa is developing another family of offshore turbines offering capacity of six to seven megawatts, with a pre-series potentially available in 2014.

Gamesa has more than 15 years of experience in the design, manufacture and installation of wind turbines, with 30 global production facilities and a development portfolio of over 22 gigawatts at varying stages.

The company is also a global benchmark in the market for the development, construction and sale of wind farms, with more than 3,500 megawatts installed and a wind farm portfolio totaling 22,000 megawatts at varying stages of development in Europe, America and Asia.

With 30 manufacturing facilities in Europe, the US, China and India, and more than 4,000 megawatts of annual manufacturing capacity, Gamesa has an international workforce of more than 6,300 people.