Barclays takes stake in Mainstream Renewable Power

Dublin-based Mainstream Renewable Power, a renewable power developer founded earlier this year by the former head of Airtricity, received a big boost today with a €40 million equity fundraising led by Barclays Capital, the investment banking arm of London's Barclays.

Barclays Capital invested €20 million in the financing round, taking a 14.6 percent stake in Mainstream. The board, management and staff of Mainstream, as well as close associates of the company invested the remaining €20 million.

Mainstream plans to develop and operate wind, solar, thermal and ocean stream projects.

"There are lots of opportunities out there and we're selecting what we believe to be the best ones," said Fintan Drury, chairman of Mainstream.

"Our plan is to go to investors with a series of commercial opportunities later this year and to raise enough equity to develop them."

Barclays Capital said it has committed to invest a further substantial amount in the upcoming fundraising round. Together with Mainstream's initial seed capital, the renewable power developer has raised €72 million to date.

Mainstream will use the money raised now and later this year to fund its expansion plans across Europe, North and South America and Australia.

In June, the company announced plans to build an initial pipeline of 240 megawatts of projects in Chile with partner Andes Energy. In addition, the company said it in advanced stages of negotiations for large-scale projects in the U.S.

Mainstream said the cash raised will also be used to secure a supply of wind turbines to be delivered in 2009, 2010 and 2011.