Parkmead Group, of Aberdeen and a “major European renewable energy developer” are in talks over a proposed 100 megawatt (MW) wind farm near Banchory.
Discussions are “progressing” and Parkmead, led by multimillionaire entrepreneur Tom Cross, hopes they will lead to a joint venture.
A 100MW wind farm could power an estimated 110,000 homes.
Where would the wind farm be built?
The land at the heart of the proposals is at Pitreadie on Royal Deeside.
Mr Cross’s wife, Linda, and a business partner sold Pitreadie Farm to Parkmead a few years ago in a deal worth £4.9 million.
The company also took on £3.6m-worth of bank debt.
At the time, Mr Cross said Pitreadie was well-suited to the installation of wind turbines, solar panels and biomass production facilities.
In a first half results statement today, Parkmead confirmed potential for a solar farm at the site.
“Concept studies” into the feasibility of a 50MW solar development are “ongoing”.
Meanwhile, the company is conducting a study on another site in Scotland with the potential for a 30MW solar farm. It did not reveal the location.
Three turbines near Stonehaven already delivering for Parkmead
And it is “evaluating options” to ramp up electricity generation at its Kempstone Hill wind farm, near Stonehaven.
The three turbines at Kempstone Hill were acquired just over two years ago from the family behind G & J Jack Seafoods, of Fraserburgh.
Alternative Investment Market-listed Parkmead paid nearly £3.3m.
The small wind farm generated revenue of £700,000 during the year to last June.
The company added: “At Pitreadie, commercial discussions continue to progress with a potential European joint venture partner to develop this area.
“Following positive results from initial studies, further environmental surveys are scheduled throughout 2024 to support the planning work required to unlock a major 100MW wind farm application on this site.
Firm’s 50% renewables ambition
“Parkmead will continue its strategy of building its renewable energy portfolio through further acquisitions of producing assets as well as driving forward its existing projects in wind and solar energies.
“The board remains focused on its strategic objective of delivering 50% of group revenues from renewable assets.”
Parkmead also has onshore and offshore oil and gas assets in the UK and Netherlands.
Independent North Sea operator The Parkmead Group plc has seen a return to profitability despite a fall in gas prices as it targets drilling on its Skerryvore target in early 2025. #NorthSea #oilandgas https://t.co/Khz20vltvX
— Energy Voice (@EnergyVoiceNews) March 28, 2024
The company reported pre-tax profits of £911,000 for the six months to December 31 2023, compared with losses of nearly £5.2m a year earlier.
Mr Cross, executive chairman, said “excellent” production rates from onshore gasfields in the Netherlands put Parkmead back in the black, “setting a base for future success”.
But revenue sank to just over £3,4m in the latest period, from about £11.1m previously.
Parkmead said the plunge in sales reflected a sharp fall in average Dutch gas prices.
Mr Cross added: “The stable electricity revenue generated by our Kempstone Hill wind farm, against a backdrop of falling international gas prices, demonstrates the importance of our strategy to continue growing our renewable energy income sources.”
Last year Parkmead pulled the plug on its flagship Greater Perth Area development in the UK North Sea, blaming taxes and growing opposition to new oil and gas projects.
The group’s 63-year-old boss founded and led Aberdeen-based Dana Petroleum until shortly after its £1.67 billion buyout by South Korea’s national oil company in 2010.
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