Big names join Fred Olsen Renewables with $480m onshore wind fund
Trio of KLP, MEAG and Keppel to take 49% stake in current developments and back new projects in UK and Sweden
Fred Olsen Renewables has nailed down €480m ($482m) of equity financing to back current and future onshore wind farms in a clutch of major European markets.
The deal initially covers three existing wind farms totalling 258MW in the developer’s home market Norway and Sweden, with an investment fund backed equally by Norwegian pension group KLP, asset manager MEAG and Singapore’s Keppel Corporation taking 49% for €176m and Fred Olsen retaining the rest.
The fund will then invest 49% in all onshore wind projects taken to final investment decision in the UK and Sweden until the remainder is fully used or five years has elapsed.
The partners “have agreed a valuation procedure for all new projects at FID, which is based on best practice valuation methods for onshore wind at a predefined cost of capital”, said a statement announcing the fund.
Anette Olsen, chair of Fred Olsen Renewables and CEO of parent group Bonheur, said: “Fred Olsen related companies have for more than 25 years developed a strong eco-system and a solid track record within the renewable energy sector.
“This is another important step to further strengthen our ability to contribute towards the world’s need for renewable energy.”
The onshore wind fund marks a debut renewable energy investment for Keppel Infrastructure Trust, and its first of any kind in Europe.
Keppel Corporation CEO Loh Chin Hua said: “The investment will provide Keppel not only with stable recurring income from the operating assets, but also a strong deal flow pipeline in well-established markets in the Nordics and the UK.”
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