CSP World

The same day the Spanish company was ringing the opening bell at NASDAQ, where Abengoa has begun trading (Nasdaq:ABGB), it's been reported that the company has taken the Spanish Government to an International Arbitration Court.

Despite the fact that Abengoa is a Spain based company, what means it cannot sue Spanish Government at International Arbitration Courts, some of the investments in Spanish Concentrated Solar Power plants have been made through a subsidiary based in Luxembourgh, CSP Equity Investment Sarl. This subsidiary is the owner of six plants in Spain, Helioenergy 1 and 2, Solaben 2 and 3 and Solacor 1 and 2, totalling 300 MW.

The arbitration will take place in La Haya, according to the Arbitration Institute of the Stockholm Chamber of Commerce, one of the institutions recognized by the Energy Treat Charter, an agreement signed by EU members to protect investments of European companies in the energy sector within the 28-member EU bloc. The hearing will be conducted by three arbitrators, two of whom have already been named.

Abengoa will sue Spanish Government after changes in the regulatory framework for renewable energy generation that are reported to cut revenues by 33%, according to Spanish CSP sector representatives. The legal action to be taken was included in the SEC's filling (Securities and Exchange Commission), although this information does not especify the amount to be claimed.

Manuel Sánchez, Abengoa's CEO said during the NASDAQ opening “everyone has to defend its own interests", while asking to those who say the CSP is an inmature technology -in clear reference to recent statements by Iberdrola's Chair- to visit the recenty opened Solana CSP plant in Arizona, "If you don't get convinced at the first round, you'll be during the second or third", "the costs for the CSP plants are falling just like happened with fossil fuel generation or wind (...) we are getting closer to achieve a competitive cost against fossil fuels (...) despite some people are trying to kill this technology before that happens".

Regarding the NASDAQ debut, Adam Kostyál, Senior Vice President, NASDAQ OMX said "Through its research and innovation, Abengoa has become one of the leading companies in the development of new technologies that contribute to sustainable development", "Abengoa truly exemplifies the innovative nature of NASDAQ listed companies and we are thrilled to welcome them to our exchange".