French energy and services group Engie and Swiss investment manager SUSI Partners have signed financing agreements for Project Tonstad, a 208MW wind farm in Norway.
Aluminium producer Hydro has signed a 25-year agreement to purchase electricity produced by the wind farm, which will be one of the largest in Norway.
Siemens Gamesa Renewable Energy will supply 51 turbines for Project Tonstad, which will be located in the Sirdal and Flekkefjord municipalities in the South of Norway.
The wind farm will sell the energy produced to Hydro Energi, a wholly-owned subsidiary of Norwegian aluminium producer Hydro.
The farm will produce 0.7TWh of wind power annually, saving 180,000 tonnes of CO2 emission, compared to average European emission per KWh.
Engie, which has developed the project, will retain a 20% stake in the project. It will continue to manage the construction and provide operational support to the wind farm.
SUSI Partners has provided financial structuring support for the project. SUSI Renewable Energy Fund II will be the majority investor in the wind park with an 80% stake.
German Landesbank Baden-Württemberg (LBBW) will provide the project debt financing package for the wind farm.
Hydro Energi’s 25-year green Power Purchase Agreement (PPA) allows Hydro to produce 50,000 tonnes of aluminium each year at its Norwegian plants.
Engie Nordics CEO Sandra Roche said: “Tonstad is an important project for Engie, as a direct application of the strategy to develop large wind projects in partnership with big industrial offtakers and a financial equity partner.
“It is also a first step for Engie in renewables in the Nordics, where the group intends to further expand its activities, in contribution to the ongoing energy transition.”
SUSI Partners chief investment officer Marco van Daele said: “SUSI’s investment mandate is dedicated to financing the global energy transition.
“Project Tonstad is a prime example of this: the project brings together the latest technology wind turbines and a bespoke, long-term offtake agreement with an industrial company for a large-scale renewable generation project with a highly competitive levelised cost of energy.”
Image: A wind farm. Photo: courtesy of safegear/Freeimages.com.