Octopus Renewables Infrastructure Trust (ORIT) has increased its investment in Nordic Generation (Norgen), a developer focused on the Finnish wind and solar market.
ORIT has committed an additional €3.4m (£2.9m) to build on the progress already achieved by the developer and to support its phase two pipeline.
As part of the transaction, ORIT’s existing 50% holding in Nordic Renewables will convert into a direct 30% stake in the integrated Norgen development business.
The new structure is expected to be value accretive for ORIT, with a base case increase of between £1m and £1.5m and should allow for greater range of upside for ORIT over the life of the asset.
The value of ORIT’s holding in Nordic Renewables was valued at €4.8m (£4m) as at 31 December 2024, an increase of £2m over the quarter.
The additional funding takes ORIT’s total maximum commitment to approximately €6.8m (£5.6m) and means that the total capacity of projects expected to reach ready-to-build stage increases to 845MW, more than double the anticipated combined capacity of 400MW originally projected.
ORIT’s investment is being made alongside another fund managed by Octopus Energy Generation, which held the remaining 50% stake in Nordic Renewables and will also be taking a 30% stake in Norgen on the same terms as ORIT. The remaining 40% stake is held by the management team.
Phil Austin, Chair of ORIT, said: “We are delighted to announce this follow-on commitment and restructuring of the Norgen investment.
“The Finnish developer has already made positive progress to date, with a number of projects expected to reach construction phase this year and next, having secured key permits.
“We believe the additional funding in this transaction will enhance generation capacity, providing much-needed clean energy.
“We also believe the updated ownership structure has the potential to deliver greater upside and opportunities for ORIT in future.”