Renewable Energy Holdings (REH), the AIM-quoted renewable energy business, has announced that it has bought Gamar GHL, a Polish wind farm company.

The deal means it will develop a wind farm site in south-east Poland, provided the vendor obtains all required planning, construction and operating permits for the site.

Under the terms of the deal REH has paid €100,000 in cash for the grant of an option to purchase the company and will pay a further €2m provided the permits are obtained by the end of June 2009.  

REH believes that the wind farm site in the mountainous region of Kobylany is capable of providing up to 30mw of power and says that an independent wind study has indicated a net capacity factor of 32% for this site. This European average for wind farms is 26-30%.

REH also owns a methane landfill gas project in Powys, Wales which is at an early stage of gas collection, currently producing at 1mw, but which is expected to increase as the landfill matures.

Mike Proffitt, chief executive officer of REH, said: “We are delighted to be signing this agreement as, along with our recently announced 70mw Wales project, it consolidates our plan to have 150mw of wind power within five years of our entry onto AIM.

“Our independent wind assessment has yielded very favourable results and we look forward to a strong performance from this asset.”

© Crimson Business Ltd. 2008