Clipper enters strategic alliance with BP for major US wind energy development
25 July 2006
LG, the London-based business law firm, has advised Clipper Windpower ("Clipper") on its strategic alliance with BP Alternative Energy ("BP") for a long-term turbine supply agreement and the joint development of five of Clipper’s wind energy projects in the USA.
The Clipper/BP Alternative Energy joint development portfolio will be developed over a five year period, with each of the five projects in the portfolio deploying Clipper’s advanced Liberty wind turbines. These projects, with an anticipated total generating capacity of 2,015 MW, will be jointly owned by the two companies with Clipper serving as the project operator in two and BP Alternative Energy serving as the project operator in the other three.
BP Alternative Energy has committed to the purchase of 100MW of Liberty turbines in 2007 and 200MW in 2008 which it will use on other projects in BP’s global wind business. Under the long-term supply agreement, BP has secured a mix of firm and contingent orders of up to 2,250 MW of additional Clipper turbines in its global wind portfolio.
As part of the deal, BP has acquired a five year share option for a 10% equity interest at £3.77 per share in Clipper Windpower (subject to final approval of the Clipper shareholders).
LG first advised US-based Clipper on its placing and admission to AIM in September 2005, which gave the company an initial market capitalisation of £180 million and sent it straight into the FTSE AIM 50 index.
LG corporate partner Hugh Maule and commercial partner Jonathan Riley led the team advising Clipper which included tax partner Michael Murphy along with Karima Hudson, Fiona McIlreavy, Farhod Moghadam, Marc Wilshaw, Sarah Bailey and Charlotte Hall.
Hugh says: "This deal marks a critical point in Clipper's growth. Through its alliance with BP it has secured a five year pipeline of turbine sales and a major breakthrough in the US wind power market. It is an ambitious company and we're really pleased to assist it in moving forward its business plan at a rapid pace."
Ed Zaelke of Morgan Lewis & Bokius was US legal adviser to Clipper. Legal advisers to BP were in-house lawyers Jens Bertelsen and Riona Commins with external advice from Richard Haywood, Andrew R B Smith, Julian Smith and Karon Maguire of Wragge & Co. David Manny of Vinson & Elkins provided US advice to BP.
Notes to editors
Lawrence Graham LLP is a London-based corporate law firm with over 270 lawyers, advising entrepreneurial and growth market clients seeking to raise capital for their business ventures.
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