Alter Energy Group AG of Switzerland has signed a letter of intent to invest 91 million euros (US$114.2 million) to build and own five hydroelectric projects in the Ukraine totaling 75 MW.
Alter Energy said November 20 that it is to own 100 percent of the stations as collateral for the required investment.
The projects were identified as 40-MW and 20-MW projects and a three-project cascade of 5 MW per plant. They are to be built in Ivano-Frankovsk Oblast in Ukraine’s Carpathian Region.
�We have begun working with the municipality, Institute of Water Resources, and strategic partners to gather and analyze the information and documents required to complete due diligence on the establishment of these hydroelectric power stations,� Alter Energy Chief Executive Officer Edward Klaeger IV said. �We will also need to go through the various processes required by the local and federal state authorities required to implement this opportunity.�
Klaeger said the company also is focusing on obtaining capital investment, including securing the project financing required to move from the planning stage to construction.
Upon repayment of its investment, Alter Energy will maintain 51 percent ownership of the projects for 15 years. Alter Energy and strategic partners will be responsible for overall project implementation and operation. Electricity will be supplied to the national grid.
Klaeger said the hydropower potential in the Ukraine is substantial and �extremely underutilized.� He said the agreement is a significant step in executing Alter Energy’s business plan.