(Alliance News) - Octopus Renewables Infrastructure Trust PLC on Wednesday said it agreed a power purchase deal with Sky UK Ltd for Sky to buy electricity produced by Octopus Renewables' Crossdykes wind farm in Lanarkshire, Scotland.
Octopus Renewables invests in renewable energy assets across Europe, the UK and Australia said media and telecoms firm Sky UK will buy 69% of the electricity produced by the 46 megawatt wind farm under the deal at a consumer price inflation-linked fixed price for a period of 10 years.
This would begin in April 2025 and increase Octopus Renewables Infrastructure's percentage of forecast revenue, which is fixed over the two years to the end of 2025, to 82% from 81%. It would increase the percentage of forecast revenue, which is index-linked over the 10 years to the end of 2033, to 53% from 51%.
Octopus Renewables Infrastructure Trust acquired 51% of Crossdykes in 2022, with Octopus Renewables Infrastructure SCSp buying the rest.
Crossdykes is expected to generate around 144 gigawatt hours of electricity every year, Octopus Renewables Infrastructure said, which is "enough to power around 50,000 homes and avoid around 50,000 tonnes of carbon dioxide emissions every year, equivalent to planting 250,000 trees".
Octopus Renewables Infrastructure Chair Phil Austin commented: "The contract underscores the strength of our investment manager's energy markets team as they implement our strategy to deliver a high proportion of fixed revenue and inflation linkage, providing added certainty to our portfolio for the long-term. Renewable energy supply deals with major corporations like Sky help meet vital targets to decarbonise their businesses."
Shares in Octopus Renewables Infrastructure were up 0.5% to 70.95 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Octopus Energy (ORIT)