Enel Green Power acquires majority stake in geothermal project in Southern Germany

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Enel Green Power acquires majority stake in geothermal project in Southern Germany

Enel Green Power (EGP) has taken its first step into the German renewable energy market with the acquisition of a 78.6% stake in Erdwärme Oberland (EO) from Erdwärme Bayern & Co, a company specialized in the development of geothermal projects in the Bavarian region.

The acquisition was carried out through the issue of new shares in Erdwärme Oberland for a total consideration of €22 million (US$24 million), covering the initial investment requirements of the project.

EO has recently developed a project for the construction of a geothermal plant with a maximum expected capacity of about 26 MW. The project, located near the town of Weilheim, about 50 km south-west of Munich, will be developed under a mineral exploration concession granted by the Bavarian Ministry for Economic Affairs, Media, Energy and Technology valid for 3 years from December 2015. EO will begin with geological exploration activities in 2016.

Francesco Venturini, CEO of EGP, said:

"This acquisition is very significant because it opens the door for Enel Green Power to a major, stable renewable energy market such as Germany. The transaction demonstrates the Group's ability to keep pace with market developments and quickly enter new countries, leveraging its global presence and experience to seize new market opportunities. We intend to build a solid platform for future investment opportunities in the country, both in geothermal power and in other sectors, contributing to achieving the target for the share of renewables in the European energy mix."

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