Magnora will initially acquire up to 5% stake and will have an option to obtain up to 50% of the project
Norway-based Magnora has finalised a deal to acquire stake in a 500MW shallow water offshore wind project in Northern Europe.
The firm said that the cooperation with the undisclosed founders and the development of the project will begin with the acquisition of an initial minority stake of 5% in exchange for funding a 12-month feasibility study.
Magnora’s total investment in the feasibility period will be approximately NOK 1,500,000 ($1,33,327) with a first tranche of approximately NOK 500,000 ($44,442) to be paid upon commencement.
Following the completion of the feasibility study, which is expected to complete by April 2021, Magnora will have an option to obtain up to 50% of the offshore wind project through a detailed milestone plan.
Magnora Business Development head Theis Hanang Pedersen said: “Magnora gains access to an independent development company with three serial entrepreneurs that marks our second building block in our co-development strategy for a large wind portfolio in the Northern European region.”
The offshore wind project will also reduce CO2 emissions
Once operational, the project is expected to produce over 2TWh of power annually which is equivalent to power around 250,000 households, in a region with high demand and low supply of green electricity.
The wind project will also significantly reduce CO2 emissions by replacing coal and gas fuelled power production in the inter-connected European grid.
Furthermore, Haakon Alfstad, who is working as the senior advisor of Magnora, will serve as executive chairman of the new portfolio company.
Magnora senior advisor Haakon Alfstad said: “The project is close to relevant infrastructure, and wind conditions are excellent.
“The project is also located in an area with very attractive electricity prices and will make a significant contribution to reducing both climate impact and health hazards related to fossil fuels.”