French developer Neoen has reached financial close for the financing of the 404MW Mutkalampi wind project in Finland.
When fully operational in 2023, the wind farm in Central and Northern Ostrobothnia in western Finland will be the largest onshore wind farm in the country.
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.
Commencement of energy production will be staggered, with a first leg scheduled to open by the end of 2022 and the second in the third quarter of 2023.
Vestas is the project’s engineering, procurement and construction contractor.
The park will comprise 69 turbines of varying power, “designed to maximise efficiency and keep visual and noise annoyance to a minimum”.
Site preparation work is already under way.
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, a Munich Re company, 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.
Together with the Hedet wind farm (81MW) and the Yllikkala battery (30MW), Mutkalampi will put Finland in Neoen’s top three countries in terms of installed power, adding up to 515MW in total.
Neoen Finland managing director Jerri Loikkanen said: “We are delighted that Mutkalampi has achieved a significant step in securing financing.
“With over 500MW, Neoen already is among the market leaders in Finland, and one of the most innovative.
“Thanks to our firm local grounding and dynamic team, we will continue helping to achieve Finland’s goal to be carbon neutral by 2035.”
Xavier Barbaro, Neoen chairman and CEO, added: “We are proud of our rapid expansion in Finland, which is now in our top three countries and I congratulate our local team.
“With this first project financed by MEAG, we are pleased to diversify our funding sources and thus provide new categories of lenders with an opportunity to participate in the energy transition.
“The Mutkalampi wind farm also reflects our ability to enlarge our customer base to major industrial clients and to innovate with a pan-European power purchase agreement for green energy.”