NTR launches EUR-250m wind fund with help from L&G
Wind turbines at work. Author: Nick Cross. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
UK insurer Legal & General Group Plc (LON:LGEN) has become anchor investor in a fund launched by Irish green asset manager NTR Plc that aims to build up to 270 MW of wind parks, the companies announced today.
Through its Legal & General Capital unit, the insurer has committed to finance up to 47.5% of the EUR 250 million (USD 273m) targeted by the fund. NTR will also be a significant investor with a EUR-50-million commitment. A select number of other investors are expected to join in the first quarter of 2016.
The total investment that would be required to build the 270 MW of capacity is estimated at about EUR 670 million. These wind farms are expected to generate enough electricity to power up to 170,000 homes and avoid more than 300,000 tonnes of carbon dioxide (CO2) emissions per year across Ireland and the UK.
NTR has already acquired the first four assets for the fund. Located in Scotland, Northern Ireland and Republic of Ireland, they are ready for construction and will deliver a combined capacity of 55 MW. The fund has an active pipeline of further investments across the UK and Irish markets, NTR said.
Legal & General has a target of spending GBP 15 billion (USD 22.3bn/EUR 20.4bn) on UK infrastructure, with its focus sectors including clean energy. The group is just starting to invest in clean energy, where it is focusing on wind and solar power in the short term.
Legal & General Capital has also invested in NTR's clean energy investment and asset management business, NTR Wind Management Ltd, in order to explore further prospects for clean energy investments.