Northern Power Systems (NPS) has announced that WEG S.A and NPS have executed a definitive agreement for WEG to acquire Northern Power System’s utility wind assets. Under the agreement, the utility scale direct drive technology developed and deployed to date by both NPS and WEG will be solely owned by WEG and its affiliates.
All assets, including the related patent portfolio for utility wind greater than 1.5MW and the engineering team largely responsible for developing this technology, become part of WEG. The engineering team will remain based in Vermont and will work alongside the Brazilian based wind engineering team to continue product development work. The companies plan an on-going collaboration providing wind solutions around the world, WEG focusing on utility scale wind and NPS on distributed energy solutions, including distributed wind. WEG will continue to compensate NPS under the existing arrangement paying royalties for sales in South America resulting in future payments of up to an approximately US$ 10 million. Additionally, WEG will pay NPS up to a further US$ 17.5 million in royalty payments over the next decade for turbines shipped anywhere outside of South America.
