Green Investment Group Ltd (GIG) has secured financial close and a long-term power supply contract for a newly-acquired, 235-MW onshore wind project in central Sweden.
GIG, the former UK Green Investment Bank, now part of Macquarie Group Ltd (ASX:MQG), said in a statement it has obtained EUR 270 million (USD 313m) of total funding for the project, which was co-developed with the energy arm of Swedish forest products company SCA (CPH:SCA-B). SCA said separately it has sold the scheme to GIG.
Macquarie Capital (Europe) Limited helped raise some EUR 160 million of senior debt from Credit Agricole Corporate and Investment Bank, and KfW IPEX-Bank GmbH (KfW). At the same time, Denmark’s Export Credit Agency (EKF) is providing export credit cover.
Meanwhile, the energy arm of Norwegian aluminium company Norsk Hydro ASA has signed what it says is the world’s longest corporate wind power contract, tied to that same project. More specifically, Hydro Energi AS has entered into a 29-year wind power deal with GIG to buy 0.3 TWh of electricity for the period 2021-2031 and a further 0.55 TWh from 2031 to 2050.
The Norwegian company will use the electricity to supply its aluminium plants at home. It currently uses renewable energy to power some 70% of its primary aluminium production around the world. In Norway, the share is 100%.
“With this contract, we have over the last 2.5 years secured wind power contracts of approximately 4.5 TWh annually from 2021 and onwards, complementing our captive and contract-based hydropower supplies,” said Executive Vice President for Energy in Hydro, Arvid Moss.
Siemens Gamesa Renewable Energy SA (BME:SGRE) will supply 56 units of its 4.2-MW turbines for the project, which is to be executed at Lansterhojden and Storflotten in Ange municipality of Vasternorrland. It will also provide operations and maintenance services for a period of 25 year.
Main construction is expected to start imminently and be completed by December 2019.
GIG said that Scandinavia is a priority market for the group. Also in Sweden, it supported the development of the 650-MW Markbygden Ett wind project outside of Pitea, which is considered to be Europe's largest single-site onshore wind farm.