December 23 (Renewables Now) - Aquila European Renewables Income Fund plc (LON:AERS) said on Friday it has agreed to pay EUR 36.7 million (USD 40.1m) for a company that owns a 43.2-MW wind project in Finland.
Korkeakangas Wind Oy owns Project Korkeakangas, as part of which an onshore wind park will be built in Karstula, Central Finland. Construction is expected to begin in January and the wind farm is due to be fully operational in December 2021. The wind park will produce enough electricity to meet the demand of 15,699 households and will save 56,473 tonnes of carbon dioxide (CO2) emissions a year.
The acquisition is subject to a number of conditions that are expected to be met by the end of March, according to the statement.
This is the first time the fund invests in a construction-phase project. The wind park was part of the pipeline included in the fund's prospectus. With the closure of this transaction, Aquila European Renewables will have deployed about 95.2% of the funds raised in its initial public offering (IPO) in June.
The fund will now start talks with Aquila Capital about another capital increase, Christine Brockwell of the Germany-based investment adviser said.
(EUR 1.0 = USD 1.100)