First Reserve, a global private equity and energy investment firm, has partnered with Mexico Power Group (MPG) to build the 130-MW La Bufa wind farm in Mexico. Upon completion, the wind farm will sell its generated power under a contracted off-take agreement to Volkswagen de México — helping the company meet its targeted renewable energy standards.
The Volkswagen plant in Puebla is the largest automobile factory in Mexico and one of the largest vehicle plants in the Volkswagen Group.
La Bufa represents the third wind farm First Reserve has partnered on in Mexico and it’s expected to bring the firm’s total generated wind power in Mexico to over 600 MW.
MPG, an experienced player in the renewable energy industry, will construct the facility in partnership with Cannon Power Group and Gamesa, the turbine provider. Financing is being provided by Sumitomo Mitsui Banking Corporation, Korean Development Bank, Nacional Financiera, and Bancomext.
“We are pleased to be entering into long-term partnerships with world-class organizations including MPG, Volkswagen de México and Gamesa to build the first wind farm in this region,” said Mark Florian, Managing Director and Head of Infrastructure Funds for First Reserve. “We expect this project may be the first in a platform of wind-power opportunities with MPG, and we are excited to be enhancing the renewable footprint of both Volkswagen de México and the country of Mexico. First Reserve is also proud to continue to generate what we believe are attractive investment opportunities with leading industry participants in Mexico, to the benefit of the Mexican economy, our corporate counter-parties, and our investors.”
Gerry Monkhouse, CEO of MPG, added, “Mexico Power Group is very happy to be working with First Reserve in developing the largest wind park in Mexico producing energy that is going to a single manufacturing facility. The clean energy that Volkswagen will consume is equal to the electricity used by 162,000 households in Mexico.”
Construction on the project has already begun with completion currently targeted for early 2017.
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