IEC teams with Afcon on Galilee wind turbine project

The project will cost an estimated $70 million.

Afcon E.B. Wind Energy Ltd. of the Afcon Industries (TASE: AFIN1; TASE;AFIN5) group, controlled by Shlomo Shmeltzer, is in talks on collaborating with Israel Electric Corporation (IEC) on a $70 million project for installing wind turbines in the Lower Galilee.

As part of the collaboration, IEC has already started the process of obtaining statutory permits for the wind turbine farm.

The project is a wind turbine farm to be set up in the Gilboa and Sirin Heights area, with an output estimated at 40-50 megawatts. In the past, IEC planned to set up the turbine farm itself as part of its development plan, but after its board refused to approve finance for the project, because of its high cost, the plan was dropped.

Afcon Wind Energy CEO Dr. Eli Ben Dov was formerly deputy manager of IEC's planning and development division.

Afcon has already reached agreement in principle with the kibbutzim in the area, among them Ma'aleh Gilboa, Beit Zera, and Degania, on setting up the wind turbine farm on their land. In the next few months it will apply to the Public Utilities Authority (Electricity) for a conditional license to set up the farm.

Afcon declined to comment on the report. IEC said in response, "The company is doing all in its power to assist the promotion of green energy, and helps private producers in every possible way. The company is a subcontractor to Afcon Wind Energy, and is contributing towards advancing these important projects. The company isprevented from divulging details of commercial agreements with its customers."

Published by Globes [online], Israel business news - www.globes.co.il - on January 14, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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