March 20 (Renewables Now) - Magnora ASA (FRA:4SM) has finalised a deal to buy an up to 5% stake, with an option to reach up to 50%, in an unnamed shallow-water offshore wind project of 500 MW in Northern Europe.
The Norway-based royalty company said on Friday that the cooperation with the unspecified founders and developers of the project calls for it to take an initial minority stake in the particular project in exchange for funding a 12-month feasibility study. This study will end no later than April 2021, after which Magnora will be able to purchase up to 50% of the project company.
Magnora entered a letter of intent to invest in the company behind the offshore wind project earlier this month. It said at the time the scheme is located outside Norway.
Magnora will invest a maximum of NOK 1.5 million (USD 126,700/EUR 119,00) in the feasibility period, with a first tranche of around NOK 500,000 to be paid when it starts.
Once operational, the proposed wind farm is expected to produce more than 2 TWh of electricity a year, meeting the power consumption of about 250,000 homes. It will be located in a region with high demand and low supply of green electricity and “excellent” wind conditions, close to the necessary infrastructure.
(NOK 10 = USD 0.844/EUR 0.794)