The launch of a new renewable energy company last week marked a “seminal moment” for the global electricity industry, according to its founders.
Mainstream Renewable Power, a Dublin-based company created by the former management of Airtricity, has a clear vision for the future and represents a “compelling commercial opportunity”, according to CEO Eddie O’Connor.
Speaking at the launch, O’Connor – formerly CEO of Airtricity – described the importance of renewable energy in a world faced with rising energy demand and high oil prices, and says Mainstream will help countries make the transition to the “post-fossil fuel era”.
“The world is using oil six times faster than we are finding new reserves,” said O’Connor. “Oil is going to reach $200 a barrel by the end of 2010 … at the same time the environmental imperative accelerates.”
“This is a historical transition that all countries will have to face up to. Mainstream Renewable Power will be a vehicle to enable countries to make the transition to renewables from fossil fuels.
“No new fossil fuel-fired power plants will be built after 2020.”
The company is aiming to develop 200 MW of capacity by 2010 and is already actively engaged in opportunities around the world. It is planning to raise EUR200 million of equity this year to fund its expansion, which will initially focus on wind power opportunities.
Mainstream says it has created an “exceptional team” of 35 managers and staff with a combined experience of over 150 years in the renewable energy industry. Sir Roy Gardner, former CEO of Centrica, has been appointed to the board.
The company wants to put renewable energy at the heart of global energy policy, capitalising on a market that is growing at 25 per cent per year and which will be worth $750 billion by 2016. It says its operations will be based on “gigawatts, not megawatts”, and sees the UK, USA, Australia, Egypt and Chile as key markets.
“We have ambitious expansion plans and over the coming years, as the environmental imperative becomes stronger, we look forward to realising our vision of creating a highly profitable business where renewable energy becomes the mainstream source of electricity on a global scale,” said O’Connor.
“We know what works and what doesn’t and what policies are needed to make renewable energy projects flourish.”
Since it began operations in February this year, Mainstream has invested EUR1 million in 2-B, a Dutch offshore wind turbine designer, and investigated onshore and offshore wind project opportunities in the UK, Ireland, Germany, the USA, Chile and Australia. It is also aiming to develop solar thermal and ocean current plants, and plans to work with governments, utilities and project developers to implement projects.
Mainstream has signed heads of agreement with Andes Energy in Chile to develop an initial pipeline of 260 MW and has firm offers for wind turbines for delivery in 2009, 2010 and 2011. It has also submitted a bid for 500 MW of offshore development in Northern Ireland.
The company will consist of two fundamental businesses focussed on project development and plant operations, said O’Connor.
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