Bioenergy, Geothermal, Hydropower

Infratil Moves into Renewable Energy

Infratil Limited has acquired a 10 percent shareholding in Energy Developments Limited (“EDL”), one of Australia’s largest Renewable Energy companies. The shareholding of approximately 11.5 million shares has been acquired for a purchase price of approximately A$41 million (US$29 million.)

Wellington, New Zealand – July 29, 2002 [SolarAccess.com] Infratil Chairman, Kevin O’Connor, said EDL, with its expertise in landfill gas and waste-to-energy projects, is well positioned to participate in the projected significant growth of these sectors, particularly in the European and US markets. EDL currently has close to 400 MW of total plant either operational or under development. Nearly half the current capacity is landfill gas generation and this is expected to continue to expand. EDL also has potential to become a significant global player in the waste to energy sector. It is continuing the development of a commercial scale fully operational project at Whytes Gully at Wollongong, New South Wales, which will, if successful, give the company a strong competitive position in this market. The EDL Solid Waste to Energy Recycling Facility (SWERF) is considered to offer a potential cost competitive solution for the minimisation of landfill volumes with integrated recycling and energy capture from the waste stream. European markets for this technology are considered to be significant and are supported by recent 1999 European Union directives setting out specific and significant landfill reduction targets. “Infratil is fully aware that proven full commercial scale operation of SWERF® has not yet been demonstrated,” O’Connor said. “Infratil has retained specialist technical and market advisors to review the SWERF® process and has developed confidence that EDL has the ability to overcome the remaining challenges and that it will in time, be able to capture a profitable share of this market place.” The acquisition involves the purchase of existing shares and the placement of new ordinary shares in EDL. Exiting EDL shareholder, NRG Energy, is withdrawing from the Asia Pacific region. Infratil and EDL have agreed a shareholders’ agreement, elements of which will require approval by EDL shareholders at that company’s Annual General Meeting. The agreement provides for various matters including the appointment of a director to the EDL Board by Infratil. Dr Bruce Harker , a director of Infratil’s manager, Morrison & Co, has been invited to join the EDL Board. Dr Harker is also Infratil’s nominee on the Board of TrustPower and was previously chairman of Australian generator, Southern Hydro. Orion New Zealand Limited has also announced that it has acquired a 10 percent shareholding in EDL.