Wind energy company Airtricity has unveiled plans for an investment of at least $1.5 billion (€1.25 billion) in the US market over the next five years. Una McCaffrey reports.

The move is designed to allow the firm to draw half of its overall revenues from a series of US joint ventures by 2010. Airtricity expects to have sales of at least €600 million at that stage, compared to €240 million over the past 15 months.

"I think we're going to explode - the US could be an awful lot bigger than that," said Airtricity chief executive Eddie O'Connor yesterday.

The first substantive US developments will come with a $270 million investment in wind farms in Texas, New York and Idaho.

The Texas wind farm is the most advanced of these. It will involve the construction of a 125-megawatt facility on 23,000 acres in the west of the state, which will have the capacity to power more than 75,000 homes.

The farm, which will begin selling to retail customers in 2006, is being developed in conjunction with Texan company Renewable Generation Holdings.

Mr O'Connor described the US investment as a "significant milestone" in the firm's development.

"It comes at a time when there is limited wind energy capacity in the US but growing recognition of the need to develop long-term renewable sources of energy." Plans for wind farms in New York and Idaho are expected to take shape soon, also in conjunction with local joint venture partners. In New York, Airtricity will form a partnership with Citizens Energy, a firm founded by the son of former US Attorney General Robert Kennedy.

The Idaho development will be undertaken with Ridgeline Energy. The two companies formed a joint venture in 2003.

Mr O'Connor, who has been critical of the lack of Government support for renewable energy, highlighted the availability of tax credits for such investments in the US.

"It makes great sense. The US has a great, big need for power," he said. "These guys recognise that they're running out of oil and natural gas."

In January, Mr O'Connor signalled his reluctance to get involved in any more large wind farms in the Republic because of the uncertainty in the market.

Airtricity, which is 51 per cent owned by utility company NTR, is currently valued at about €350 million, a valuation that has climbed 36 per cent over the past year.

The firm is expected to float within the next two years. NTR chief executive Jim Barry said recently that his board would decide in 2007 whether Airtricity still needed the security of a large stakeholder.