(Alliance News) - Octopus Renewables Infrastructure Trust PLC said Tuesday it has made its first investment since listing in London in early December.
The renewable energy assets investor has acquired the Ljungbyholm wind farm, a construction-ready onshore wind farm project in south Sweden, from renewable energy firm OX2.
Octopus expects to complete the GBP59 million all-cash deal soon. This is for 100% of the project and includes future construction payments.
Octopus Chair Phil Austin said: "I am delighted to announce our first investment, into a construction ready wind project in Sweden. This investment marks our first step towards building a diversified portfolio of renewable energy assets aimed at reducing the impacts of climate change."
Construction will begin shortly and is expected to be completed by mid-2021. Current plans project the wind farm will be fully operational in the second half of 2021, Octopus said.
The construction will be carried out by an affiliate of OX2, under a fixed-price turnkey construction contract.
The wind farm, consisting of 12 turbines, is expected to have an operating life of 30 years with a total capacity of 48 megawatts.
The Ljungbyholm farm is about 17% of Octopus's IPO proceeds, when it raised GBP350 million. The trust said this project is the first in a pipeline of opportunities it is currently pursuing.
Octopus AIF Management Ltd is Octopus Renewables' fund manager.
Octopus Renewables Investment Director Chris Gaydon added: "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.
"Since IPO our pipeline has continued to grow and we are actively pursuing a number of opportunities for the company in our target markets across the UK, wider Europe and Australia."
Shares in Octopus were flat in London on Tuesday midday at 104.60 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Octopus Energy (ORIT)