New alliance to develop wind power projects in Australia

Listed minerals explorer, Michelago Limited, has announced it has reached agreement with ANZ Banking Group Limited (ANZ) to develop wind power projects in Australia and overseas.

The agreement between Michelago and ANZ Infrastructure Services Ltd (ANZIS) - a division of ANZ - involves the development of wind power projects in support of federal and state government renewable energy legislation.

Under the agreement, all current and future wind power projects from Michelago will be pooled through the Wind Power Investment Trust (WPIT) managed by ANZIS.

Wind power projects with an estimated capital cost of more than $500 million have already been identified by Michelago and ANZ.

These include wind power projects in western Victoria and the southern tablelands of New South Wales, and other prospects being investigated in Victoria, NSW and the south east of South Australia.

ANZIS already has interests in two South Australian wind farms - at Tungketta Hill and Sheringa - with the potential to deliver over 200MW of green energy into the national electricity market.

The Michelago-ANZ agreement will see Michelago vend its existing wind development rights and intellectual property into WPIT and receive two million units in the Trust while WPIT will provide funding for the Michelago projects and Michelago shareholders obtain preferential offering in any IPO of WPIT.

Michelago's managing director, Chris Cowan, said the establishment of WPIT followed a period of extensive industry research and government liaison.

"It is expected that WPIT will become a major equity investor in the wind power sector, both in Australia and in the longer term overseas," Mr Cowan said.

"It is an ideal agreement for the Australian renewable energy industry. It brings together Michelago's proven ability to identify and develop wind power projects with ANZ's financial strength and expertise in delivering major infrastructure projects.

"The agreement with ANZ will create a quality asset for Michelago with potential growth and significantly reduce the company's ongoing cost structure."