CBD Energy has entered into an agreement with Environmental Engineering Group Thailand (EEG) to acquire 30% of the company, securing additional 100MW of pipeline.
As part of the transaction, CBD intends to grant EEG a sub-license to utilize the Westinghouse Solar brand in Thailand. The company has developed a unique market position with an attractive model for commercial solar rooftops which is supported by a partnering agreement with the Government owned Provincial Electricity Authority’s renewable energy subsidiary PEA ENCOM.
This transaction will ensure that CBDE participates in EEG’s extensive project pipeline of over 100 MW with the potential for significant and rapid growth. This pipeline is in addition to an agreement, announced August 1, with Environmental Engineering Group Thailand (EEG) to participate in the construction of 64MW of solar projects with a projected development cost of approximately $112 million. The projects are supported by 25-year power purchase agreements.
CBDE acquired the exclusive worldwide license to market its residential and commercial solar under the Westinghouse Solar name. The company believes the branding value of the Westinghouse may enable it to rapidly develop new markets and new customers. As part of the transaction between the two companies, CBDE intends to grant EEG a sub-license to trade under the Westinghouse Solar brand.
“We feel Thailand represents an incredible opportunity to capitalize on a rapidly developing market with growing power needs, and blends well with projects we have under development in North America, Europe, UK and Australia,” said Gerry McGowan, CBD Energy Executive Chairman. He added that geographic diversification is one of CBDE’s core strategies for achieving growth and predictable cash flows.