PARKMEAD, the oil and gas firm, is expanding into the renewable energy sector.

Aberdeen-based Parkmead said it is to acquire Pitreadie Farm Limited, a company which has extensive farmland in Scotland with significant renewable energy potential.

The consideration comprises £4.9 million in new Parkmead shares, alongside adoption of an existing £3.6m loan from Bank of Scotland.

The company said that potential has been identified for the installation of numerous wind turbines, a solar farm and biomass production on the land totalling 2,320 acres in Aberdeenshire.

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As a result of the move, the shareholding of Parkmead’s founder and executive chairman Tom Cross and his affiliates will increase from approximately 19 per cent to 26%.

Ryan Stroulger, Parkmead’s chief financial officer, said: “We are delighted to have secured this exciting opportunity in line with Parkmead’s strategy.

“The acquisition strengthens the group by adding quality assets with very significant renewable energy potential.

“Renewable energy is an area of major opportunity for us and, with our strong in-house technical and commercial expertise, Parkmead is very well positioned to benefit from this acquisition. The acquisition is complementary to Parkmead’s other business areas.”