Vermont-based Northern Power Systems Corp. (NPS) has executed a definitive agreement with WEG S.A. in which WEG will acquire NPS’ utility wind assets.
Under the agreement, the utility-scale, direct-drive technology developed and deployed by both NPS and WEG will be owned solely by WEG and its affiliates.
All assets – including the related patent portfolio for utility wind greater than 1.5 MW and the engineering team largely responsible for developing this technology – become part of WEG. The NPS engineering team will remain based in Vermont and will work alongside WEG’s Brazil-based wind engineering team.
WEG and NPS started collaborating in 2013 and since then have introduced a permanent-magnet, direct-drive wind turbine solution in the Brazilian market.
“We have decided to move forward and take this fundamental step in our wind energy internationalization and growth strategy,” said Eduardo de Nóbrega, WEG Energy’s managing director.
The companies are planning an ongoing collaboration, with WEG focusing on utility-scale wind and NPS focusing on distributed energy solutions, including distributed wind.
WEG will continue to compensate NPS under the existing arrangement by paying royalties for sales in South America – resulting in future payments of up to approximately $10 million. Additionally, WEG will pay NPS up to $17.5 million in royalty payments over the next decade for turbines shipped anywhere outside of South America.
