PEEL Group's energy business today announced an agreement to look at developing wind farms on land owned by UK Coal.

The two companies said they would look at 14 UK Coal sites which could be turned into wind farms. Their agreement will last for two years and involve site evaluation and pursuit of planning permission.

"Given the nature of sites attractive for wind farm development, most of the land likely to be considered for wind farms has little value for alternative commercial use," the firms said.

The 14 sites encompassed by today's agreement are at various stages of development, from inception to planning negotiations. If all are successful, they would have the potential for 54 wind turbines generating up to 133 megawatts of power.

Trafford Centre and Manchester Ship Canal owner Peel, which has a 28 per cent stake in UK Coal, is behind the £50m Scout Moor wind farm between Rawtenstall and Rochdale and this week unveiled its £15m scheme at the Port of Liverpool, where the first of four turbines has arrived from Germany.

It will generate 10 megawatts of power when completed, enough to meet the annual electricity needs of 5,500 homes.

UK Coal chief executive Jon Lloyd said of today's deal: "We believe there is significant opportunity to develop wind farms on parts of our land portfolio. By allying with Peel Energy, we are joining forces with one of the UK's most active and knowledgeable wind power companies.

"This will accelerate our alternative power business …without distracting us from our core mining and property development operations."

Peel Energy director Steven Underwood said: "This agreement is an important step for Peel Energy, significantly expanding its onshore pipeline and gaining access to some of the UK's best potential wind farm locations."

UK Coal's shares gained almost seven per cent to 78.75p after today's announcement.