Octopus Renewables secures corporate PPA for 50-MW Scottish wind project

Octopus Renewables Infrastructure Trust plc (LON:ORIT) announced on Thursday that it has signed a power purchase agreement (PPA) with a subsidiary of personal care products maker Kimberly-Clark Corp (NYSE:KMB) to supply it with electricity from the 50-MW Cumberhead wind project in Scotland.

Construction at the wind farm site in South Lanarkshire has recently started.

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ORIT, which is managed by the investment arm of the privately-owned Octopus Group, said that Cumberhead is expected to be fully operational by the fourth quarter of 2022.

The wind farm is expected to generate approximately 160,000 MWh which will cover close to 80% of the electricity needs of the UK-based off-taker Kimberly Clark Limited.

"The Cumberhead project will add a significant onshore wind asset to our diverse portfolio, and is expected to provide attractive levels of income for shareholders once operational," ORIT chairman Phil Austin said.

The acquisition of the project from RDC Partners was completed in September. The wind farm will have 12 Nordex N133 turbines and have an initial expected operating life of 25 years. ORIT is spending up to GBP 75 million (USD 100.9m/EUR 89.2m) overall on the purchase and construction of the project.

(GBP 1 = USD 1.346/EUR 1.189)