Norway-based investor Magnora has finalised a deal to take a 5% stake, with an option to rise to 50%, in an unnamed 500MW offshore wind farm that is under-development.
Magnora said co-operation with the undisclosed founders and the development of the project will now start with it obtaining an initial minority ownership interest in exchange for funding a 12-month feasibility study that will end no later than April 2021.
The Norwegians then have the option to acquire up to 50% of the development, described as a shallow water offshore project, through a detailed milestone plan, the company added.
It said the team of project company founders has a 25-year track record of successful development of more than 3GW of wind power projects in several countries across the world both on- and offshore.
The team’s experience covers all aspects of a green field project development and commissioning work, Magnora said.
The company added that the planned project is expected to produce more than 2 terrawatt-hours of electricity a year in a region with high demand and low supply of clean power.
Magnora will invest a maximum of Nkr1.5m (€123,000) in the feasibility period, with a first tranche of approximately Nkr500,000 paid upon commencement.
Magnora head of business development Theis Hanang Pedersen said: “Magnora gains access to an independent development company with three serial entrepreneurs that marks our second building block in our co-development strategy for a large wind portfolio in the Northern European region.”
Magnora senior advisor Haakon Alfstad said: “The project is close to relevant infrastructure, and wind conditions are excellent.
“The project is also located in an area with very attractive electricity prices and will make a significant contribution to reducing both climate impact and health hazards related to fossil fuels.”
Alfstad will take the position as executive chairman in the new portfolio company.