Octopus Renewables Infrastructure Trust has made its first investment, the acquisition of the 48MW Ljungbyholm wind farm in Sweden.
The construction-ready project has been developed by OX2 for a cash consideration, including future construction payments of €68m.
Octopus Renewables Investment Trust expects construction of the wind farm, which is located in the Kalmar municipality in south Sweden, to begin shortly and complete in mid-2021 with it becoming fully operational in the second half of 2021.
Octopus Renewables Infrastructure Trust chairman Phil Austin said: “I am delighted to announce our first investment, into a construction ready wind project in Sweden. This investment marks our first step towards building a diversified portfolio of renewable energy assets aimed at reducing the impacts of climate change.”
The construction will be carried out by an affiliate of OX2, under a fixed-price turnkey construction contract.
The wind farm, consisting of 12 turbines, is expected to have an operating life of 30 years.
The construction is expected to be completed without debt finance at the project level.
Octopus Renewables Infrastructure Trust, which raised gross proceeds of £350m in its initial public offering on the London Stock Exchange in December 2019, is targeting investment in construction, construction-ready and operational renewable energy infrastructure assets across the UK, wider Europe and Australia.
The Ljungbyholm investment amounts to approximately 17% of the net IPO proceeds and is the first in a pipeline of opportunities that Octopus Investments is currently pursuing on behalf of the trust.
Octopus Renewables investment director Chris Gaydon added: “We are pleased to announce our first acquisition on behalf of Octopus Renewables Infrastructure Trust.
“Scandinavia is an attractive market due to the possibility of combining high levels of wind resource with the latest wind turbine technology, and we are delighted to have had the opportunity to acquire this asset in southern Sweden.
“Furthermore, acquisition of the Ljungbyholm wind farm may lead to further opportunities for collaboration with OX2, one of Scandinavia’s leading renewable energy developers.”