The two Finnish wind farms Kröpuln and Storbacken will generate 206GWh of clean energy once they become operational in 2021
M&G Prudential’s investment arm Infracapital has acquired Kröpuln and Storbacken wind farms, which have a total generating capacity of 60MW, from OX2.
The deal includes Infracapital acquiring the 100% stake in two onshore wind projects from the European renewable energy developer. The wind farms are powered by 14 turbines and will annually generate about 206GWh of clean energy per year, which is enough to power 120,000 homes.
Infracapital managing director Michele Armanini said: “We are pleased to announce our first greenfield investment in Finland and the first onshore wind project for Infracapital Greenfield Partners Fund I.
“As a leading infrastructure investor, Infracapital is delighted to partner with Nordic developer OX2 in a project to deliver sustainable value to our investors, whilst making a material contribution to renewable energy in Finland.”
OX2 will continue to act as the projects’ asset manager throughout construction and operations under a bespoke engineering, procurement and construction (EPC) contract. Commercial operations of the wind farms could begin in the fourth quarter of 2021.
OX2 CEO Paul Stormoen said: “We are very pleased to have established a good working relationship with Infracapital and are looking forward to our continued collaboration. With this contract included, we are now building six wind farms without subsidies in Finland, which shows that wind power will play a leading role in the transition to sustainable energy.”
The acqusition is Infracapital’s second investment in Finland
The portfolio is Infracapital’s second investment in Finland and is the first project for Infracapital Greenfield Partners Fund I (IGP I) in the Nordics. IGP I’s strategy is to build, deliver and operate essential greenfield infrastructure to support long-term economic growth across Europe.
In Finland, renewable energy sources account for about 40% of energy end-consumption. The Finnish Government’s National Energy and Climate Strategy to 2030 aims to increase the use of renewable sources to more than 50% of energy end-consumption in the 2020s.
Currently, OX2 is building 15 wind farms with a total of approximately 973MW in the Nordic region, with nearly 190MW of it in Finland. In July, the company acquired the 150MW Metsälamminkangas wind project, located in North Ostrobothnia, Finland, from LähiTuuli.