General Electric (GE), one of the largest companies in the world, has decided to buy into the Tynagh Energy power plant, which recently went into commercial production.
GE's Energy and Financial Services division has taken up a 40 per cent shareholding in the plant. It bought the stake from Turkish firm Gama Construction, although the deal is subject to "customary closing conditions", said a statement. Gama originally owned an 80 per cent stake, but has decided to sell half of this.
The remaining shareholder is Mountside Properties, controlled by consultant Bran Keogh, which has a 20 per cent stake.
The price paid by GE is not known. The 400 megawatt gas fired plant has been completed on time and on budget, said the shareholders.
It will meet approximately 10 per cent of Irish energy market demand.
Tynagh Energy Ltd, the operators of the plant, were selected as to design and finance the station back in December 2003 by the Commission for Energy Regulation. General Electric had an existing association with the plant during the construction phase.
In a statement Arif Ozozan, general manager of the plant, said it was coming into production at a time of "significant energy shortages in the national grid". He said the plant was modern and highly efficient and would use the cleanest of the fossil fuels - natural gas. He said the decision by GE was a "vote of confidence" in the plant.
GE is one of the largest companies in the world and has huge experience in the energy business. In 2005 the US company had a turnover of $131 billion. Several large international companies have been buying into the electricity market here recently - for example the Royal Bank of Scotland recently took a major stake in the Synergen plant in Ringsend.
While private companies have sought an exposure to the energy business here, the ESB remains the dominant player with 19 power stations.
Only two private plants of significant size have been built over the last few years - Tynagh and Aughinish Alumina.
Over the next few years Bord Gáis plans to build a plant in Cork, while Viridian is planning one for Huntstown in north Co Dublin. It has an existing gas-fired plant at this site.
