NBT signs two EPC contracts with China’s CET to build two wind farms, which could power nearly 340,000 Ukrainian households
Image: Officials of NBT and CET signing EPC contract in Beijing. Photo: Courtesy of NBT/Business Wire.
Norwegian wind power developer NBT has signed two engineering, procurement and construction (EPC) contracts with China Electric Power Equipment and Technology (CET), a subsidiary of State Grid Corporation of China, to build two wind farms with a total capacity of 750MW in Ukraine.
The two wind farms – the 300MW Zophia II wind farm and the 450MW Zophia III wind farm – will be located in the Zaporizhia region of Ukraine.
Once completed, the two wind farms are expected to have an annual production of 2,900GWh of clean energy, which is enough power nearly 340,000 Ukrainian households, while avoiding nearly 1.6 million tons of CO2 emissions annually.
Additionally, NBT, CET, Industrial Commercial Bank of China (ICBC), the Export-Import Bank of China (Exim Bank of China) and China Construction Bank (CCB) have also signed preliminary financing arrangement agreement to finance the two wind farms.
The two companies have also agreed to cooperate on a global basis on future renewable energy projects.
Upon completion, the two projects will become the largest onshore wind farms in Europe
The 300MW Zophia II and 450MW Zophia III wind farms will become the largest onshore wind farm in Europe, once completed. The wind farms will entail an investment of more than €1bn, which is equal to about 1% of Ukraine’s GDP.
NBT is building the success of its 250MW Syvash wind farm which received its first international financial close early this year.
With support from ICBC, Exim Bank of China and CCB for €500 million of senior debt, NBT plans to engage additional international banks into the bank syndicate for another €250m in project financing and aims for even larger financial close for Zophia.
NBT claims that the Zophia wind farms will be built to high standards that meet EBRD Performance Standards and Equator Principles.
The electricity generated from the wind farms will be sold to ‘Guaranteed Buyer State Enterprise’, a state-owned company that is the wholesale electricity market operator in Ukraine.