ZURICH (Dow Jones)--Swiss utility BKW FMB Energy Ltd (BKWN.EB) said Thursday it is expanding its presence in Italy by acquiring minority interests in two biomass plants in the Campania region and on the island of Sardinia.
The plants are scheduled to go into operation in 2008 and 2009 respectively. BKW is also currently planning to build a gas-fired combined-cycle power plant in the Basilicata region.
BKW is acquiring a 25% minority stake in two 11-MW biomass plants in Pignataro Maggiore, in the Campania region. The two plants, which process solid biomass obtained from agricultural and forestry operations in the area, are being built by BKW's partner company STC S.p.A. and are scheduled to go live in the summer of 2009. BKW's investment amounts to EUR6 million.
BKW also has a 10.5% minority stake in the BioPower Sardegna project company on the island of Sardinia. The aim of the project company is to build and operate a modern 35-MW liquid biomass plant in Ottana in the province of Nuoro, with an efficiency level of 49%. The plan is to have the first part up and running by mid-2008 and put the finished plant into commercial operation in early 2009. BKW is being partnered in this project by STC S.p.A., Ottana Energia S.r.l. of Sardinia, and Etschwerke AG. The cost of BKW's stake is around EUR3.5 million.
In addition, BKW is currently planning to build and operate a modern 400-MW gas-fired combined-cycle power plant in the Basilicata region of Southern Italy. The targeted location is Irsina in the province of Matera. If implemented, the investment volume for this project will be around EUR250 million.