Cahermurphy Windfarm Obtains EIIS Investment
EIIS funds will be used to part-fund the construction of a six megawatt (MW) wind farm located at the townland of Cahermurphy, Kilmihil, Co Clare, at a projected cost of €12.5 million.
“The company engaged the services of leading consultants Garrad Hassan & Partners to investigate the potential wind yields and they issued a very favourable wind report,” said McKeogh.
“They also have full planning and a 30-year lease agreement in relation to the site on which the turbines will be built. The landowners are also shareholders and promoters of the project, which adds to the security around the site and access.”
The project promoters are Padraig Howard, John Flynn, Michael Egan and Michael Murphy.
“Padraig Howard (CEO) is a very experienced wind farm promoter. He was the instigator of Mount Callan wind farm, one of the largest wind farm projects in the state, spending five years managing the project.
“Once energised in 2017 Mount Callan will be one of the flagship wind farm projects in Ireland with a maximum capacity of 72 megawatts, highlighting Padraig’s experience in the sector.” said McKeogh.
John Flynn has 25 years of experience in local government as an engineer, fire officer and chief fire officer. Michael Egan and Michael Murphy are both significant landowners in the project, having farmed their respective sites at Cahermurphy for many generations, with strong local knowledge and connections.
“Cahermurphy is a very solid project with experienced promoters at the helm,” stated McKeogh. The Cahermurphy EIIS private placing is offering a maximum return of €1.15 for every €1 invested, on top of the 40% tax relief. The promoters are committed to meeting the employment creation criteria so investors receive the full tax relief. They already have a grid connection so Revenue considers the company to be trading and there should be no delay issuing EII3 forms to investors in 2017. There is also a clear exit plan (via a put and call option agreement) so investors can see how their funds will be repaid after the 5-year investment.
McKeogh said Ireland played a leading role in the wind industry and had the ability to produce wind energy in excess of the current domestic demand for electricity, strengthening the sector’s appeal as an EIIS investment choice.
“Ireland has a target of generating 40 per cent of electricity consumption from renewable resources by 2020, the majority of which will be generated by onshore wind.”
She said wind energy generation projects tended to be well-supported by lending institutions in Ireland.
“We also see that wind farms tend to be sold at strong prices and are expected to do so for the foreseeable future,” said McKeogh.
“It is certainly our experience that EIIS investments in wind farms to date have tended to perform well and are popular with investors seeking EIIS relief.”
This article appeared in the print issue of the Sunday Business Post on 20 November 2016.