Cosalt moves into renewables with major stake in wind venture

Grimsby-based Cosalt signalled its intent to tap the growing renewable sector by setting up a Renewable Energy division last year.

Yesterday it said it has acquired 80 per cent of a joint venture with Danish engineering company Apro, to offer engineering, safety and inspection services to the wind turbine sector.

The joint venture company, which was previously owned by Apro, has been renamed Cosalt Wind Energy. It already has a framework agreement with Siemens to supply engineers to its offshore wind turbines.

Cosalt paid an initial 200,000 plus a deferred sum of up to 430,000 depending on the venture's performance in 2011.

Cosalt chief executive Mark Lejman said: "This joint venture with Apro is an important step towards realising our objective of developing a major renewables business in the UK and Europe.

"Together we can deliver a complete package of safety, engineering and inspection services to the wind energy market."

Cosalt said the business would benefit from the combination of Apro's wind power expertise and Cosalt's safety services and wide network of port branches.

The marine safety group has 11 UK bases, with sites such as Grimsby, Newcastle, Lowestoft, Edinburgh, Southampton and Birkenhead offering immediate access to UK offshore wind farms. It will target sites such as the 5,000-turbine field planned in the Humber region by 2020.

"Cosalt Wind Energy will enable the company to accelerate its penetration of this market," said the group.

Apro chief executive Henrik Moeller-Jensen said: "Our two companies complement each other very well and we feel there is much to be gained from sharing our market knowledge and technical expertise.

"We have worked in the wind energy sector for many years and we know how to recruit, train and manage a large workforce of qualified wind turbine engineers.

"The formation of Cosalt Wind Energy means we can now back this up with all the products and services required to operate safely and effectively in a hostile offshore environment."

Analyst Adrian Kearsey at Evolution Securities said the deal was "a significant strategic move which should materially uplift forecasts in due course".

"This move extends Cosalt's inspection and safety operation into a potentially very lucrative area," he added.