ORIT is using the funds generated from last year’s IPO to acquire renewable energy projects across, the UK, Europe and Australia
Octopus Renewables Infrastructure Trust (ORIT) has signed an agreement with OX2 to acquire the 48MW Ljungbyholm wind farm, a construction-ready wind farm in Sweden, for €68m.
ORIT expects that the construction of the wind farm, which is located in the Kalmar municipality in South Sweden, will begin shortly and it could be operational in the second half of next year. The responsibility of the wind project’s construction is being handled by an affiliate of OX2.
Last December, ORIT raised ₤350m in an initial public offering (IPO) and aims to invest the money in a diverse portfolio of construction, construction-ready and operational renewable energy infrastructure assets in the UK, wider Europe and in Australia.
Ljungbyholm wind farm is the first acquisition for ORIT
This is the first acquisition being made by ORIT and is part of a pipeline of opportunities that the company is pursuing.
Octopus Renewables Infrastructure Trust investment director Chris Gaydon said: “We are pleased to announce our first acquisition on behalf of Octopus Renewables Infrastructure Trust.
“Scandinavia is an attractive market due to the possibility of combining high levels of wind resource with the latest wind turbine technology, and we are delighted to have had the opportunity to acquire this asset in southern Sweden.
“Furthermore, acquisition of the Ljungbyholm Wind Farm may lead to further opportunities for collaboration with OX2, one of Scandinavia’s leading renewable energy developers.”
The wind project will include 12 of Nordex’s N149/4.0-4.5 wind turbines, each with a total height of 200m. When operational, the wind farm is estimated to generate nearly 150GWh of clean energy annually and could have an operating life of 20 years.
The other major sub-contractors for the project include Kanonaden for construction work and E.ON as the grid connector.
As the wind project’s construction is taking place without debt finance at the project level, ORIT expects flexibility in optimising the strategy for power sales over time.
OX2 transaction manager Dimitrios Tsioulis said: “OX2 acquired the project rights in 2019 and has, since then, continued to develop the project.
“Thanks to this we can now sign the contract with ORIT and begin the construction process. We have ensured that the wind farm can deliver electricity at competitive prices.”