Falck enters Norway with majority stake in 70 MW of wind projects
Wind farm in Norway. Author: John Christian Fjellestad. License: Creative Commons, Attribution 2.0 Generic
Falck Renewables SpA (BIT:FKR) is entering the Norwegian market with a deal to acquire a majority stake in two consented wind projects with a capacity of about 70 MW.
The Italian renewable energy company said on Monday it has agreed to acquire an 80% interest in Vestavind Kraft AS, the company holding the Hennoy and Okla projects, from Norwegian power generator Svelgen Kraft Holding AS. The latter will keep a minority stake and contribute its market and power generation experience.
In addition, the deal gives Falck Renewables the option to access another 125 MW of Norwegian wind projects developed by Svelgen Kraft Holding.
The transaction is expected to close by the end of next month, with the partners intending to make a final decision on building the two projects by the end of September 2018.
"The acquisition of Vestavind Kraft fits squarely into our strategy and represents an important milestone set forth in our Industrial Plan," said Falck Renewables chief executive Toni Volpe. "These sites have strong wind resource and can offer one of the most competitive levelized cost of energy in Europe," Volpe added.
Falck Renewables is to pay about EUR 2.2 million (USD 2.5m) for the purchase from its existing resources. A potential earn-out of another about EUR 3.8 million is envisaged, conditional on a final investment decision.