Natural Power will support the lenders throughout the construction stage of Finland’s largest wind farm, the 404MW Mutkalampi project being developed by Neoen.
Natural Power will act as technical advisor and its scope of work will include certification of debt draw downs, regular progress reporting and site visits.
The consultancy provided technical due diligence services and energy yield assessment to Neoen for the financing of Mutkalampi, located in western Finland.
Neoen recently reached financial close for the project, which will be the largest onshore wind farm in Finland, accounting for 2% of the country’s annual production.
Natural Power delivered an independent, bankable energy yield assessment and a comprehensive technical due diligence report including a review of the EPC contract, turbine O&M agreement, grid connection agreement, all power purchase agreements, construction programme, electrical design, site access and transportation arrangements, ground investigations, turbine technology, permits and environmental review, and a financial model technical inputs review.
Most of the electricity produced by Mutkalampi will supply Google, Heineken, Nobian (previously Nouryon), Philips and Signify through five 10-year corporate power purchase agreements, for a combined total of 251MW.
The project will be financed by Neoen’s own capital and a €290m non-recourse senior debt facility provided by German institutional asset manager MEAG, acting on behalf of primary insurance companies of ERGO, institutional investors via MEAG and several investment funds managed by MEAG.
Neoen has also secured €38m in VAT funding from Swedish bank SEB.
Total investment in the wind farm is projected at €478m, aside from financing costs.
The first stage of energy production is due to become operational by the end of 2022, and the second stage, in the third quarter of 2023.