Low Carbon has announced that it has reached financial close on the Mörknässkogen wind farm in Finland. With a capacity of 29.5MW generated from five N163 5.9MW Nordex turbines, the project forms part of the company’s exclusive development pipeline of more than 120MW across the country.
The site on the west coast of Finland, near the city of Vaasa, is set to become Low Carbon’s first operational wind farm in the country, with commercial operations expected to commence in Q4 2023.
The region’s climate and its abundant supply of natural wind is expected to deliver an impressive production capacity of approximately 100GWh per annum, capable of powering over 29,700 homes and avoiding more than 20,900* tonnes of CO2e emissions. It will sell its power via a 10-year virtual Power Purchase Agreement (PPA) to Ecolab, a global leader in water, hygiene and infection prevention solutions and services. A route to market and balancing PPA has been entered with Axpo.
The Mörknässkogen wind farm aligns closely with Finland’s National Energy and Climate Strategy for 2030, which aims to increase the use of renewable energy to 50 per cent of energy end-consumption. It will also contribute towards Low Carbon’s ambitious target of building 20GW of new renewable energy capacity by 2030. As Finland is already a world leader in the utilisation of renewable sources of energy, the project will become an important asset in Low Carbon’s expanding European portfolio.
Commenting on the milestone, John Graves, CIO of the Low Carbon Renewables Fund said: “Achieving financial close on the Mörknässkogen wind project demonstrates Low Carbon’s ability to effectively direct capital into renewable energy infrastructure at scale. Finland is a highly sought after European renewables market, and we are proud to play a part in diversifying the country’s renewable power mix with affordable and clean wind energy.”
“At a time of increased scrutiny for energy use and net zero commitments, we are proud to be investing in renewable options that are good for both Ecolab’s business and our planet,” said Ecolab Chief Sustainability Officer Emilio Tenuta. “Many of Ecolab’s more than 47,000 associates globally are supporting our customers on their net zero transition, and this agreement provides a tangible example of how to move from commitment to action.”
Financing partner for the project is the European infrastructure and energy financing specialist Kommunalkredit Austria AG, acting as Sole Mandated Lead Arranger in the EUR 24.8m senior financing facility.
“After having supported Low Carbon with the acquisition of the project rights in summer 2021, we are pleased to see the project quickly reaching ready-to-build status. Kommunalkredit’s construction bridge products are tailor-made and highly effective, allowing sponsors maximum flexibility, especially in the current economic environment”, says John Weiland, Head of Banking at Kommunalkredit.
Commenting on the deal, Patxi Landa, Chief Sales Officer at Nordex said: “We are delighted to conclude our first deal with Low Carbon and to continue our strong performance in the Finnish market. In these volatile times it is a pleasure to see our customers’ commitment to invest in our energy security and de-carbonising our energy systems.”
Notes to Editors:
*Low Carbon calculations using IFI Harmonised Default Grid Factors (https://unfccc.int/climate-action/sectoral-engagement/ifis-harmonization-of-standards-for-ghg-accounting) for carbon avoidance and Energy consumption of electrical appliances per dwelling using https://www.indicators.odyssee-mure.eu/online-indicators.html
About Low Carbon
Low Carbon is a leading renewable energy investment and asset management platform committed to the development and operation of renewable energy at scale. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar PV, wind, energy storage, waste-to-energy and energy efficiency. Low Carbon, a certified B Corp, has a proven track record in the development, construction, financing and management of renewable energy assets and remains involved in the projects for the long term with a dedicated asset management team that manages assets on balance sheet and for third parties. With a significant international renewable energy pipeline in development, Low Carbon are well-positioned to capitalise on opportunities as the need for renewable energy and energy security increases. www.lowcarbon.com
A trusted partner at nearly three million customer locations, Ecolab (ECL) is the global leader in water, hygiene and infection prevention solutions and services that help protect people, planet and business health. With annual sales of $13 billion and more than 47,000 associates, Ecolab delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, help maintain clean and safe environments, optimize water and energy use, and improve operational efficiencies and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries around the world. www.ecolab.com
Kommunalkredit is a specialist for infrastructure and energy financing. Together with its customers as partners, the bank creates value that continuously improves people's lives. In doing so, it facilitates the construction and operation of infrastructure facilities by balancing the financing needs of project sponsors and developers with the growing number of investors looking for sustainable investment opportunities. Main investment segments are Energy & Environment I Communications & Digitalisation I Transportation I Social Infrastructure I Natural Resources. www.kommunalkredit.at
About The Nordex Group
The Group has installed more than 39 GW of wind energy capacity in over 40 markets and in 2021 generated revenues of EUR 5.4 billion. The company currently employs a workforce of approx. 8,600. The joint manufacturing capacity includes factories in Germany, Spain, Brazil, the United States, India and Mexico. The product portfolio is focused on onshore turbines in the 4 to 6.X MW class, which are tailor-made for the market requirements of countries with limited space and regions with limited grid capacity. www.nordex-online.com