Downing Renewables & Infrastructure Trust plc has signed an exclusivity agreement with Bagnall Energy Limited in relation to a proposed investment in a 100 MW nearshore, shallow water wind farm to be constructed in Lake Vänern in southern Sweden, developed by Cloudberry Clean Energy AS.
Bagnall is part of the Downing Estate Planning Service, which is managed by Downing LLP, DORE's investment manager.
The exclusivity agreement gives DORE the option to enter into a commitment for the Wind Farm once certain conditions have been met. Once these conditions have been met, DORE would own c.40% of the project, with Bagnall and Cloudberry owning c.40% and 20% respectively. Confirmation of the acquisition is expected to be be announced in the summer of 2021. For further information see the IDTechEx report on Distributed Generation: Off-Grid Zero-Emission kW-MW 2020-2040.
The 100 MW wind farm project in Lake Vänern is the second wind farm on the lake and is situated close to existing grid infrastructure. It includes 16 turbines with an estimated annual power production around 350 GWh, significantly strengthening the access to clean and renewable energy in the region.
DORE, which raised £122.5 million in its IPO on the London Stock Exchange in December 2020, is targeting investment in a diversified portfolio of renewable energy generating assets and other infrastructure assets in the UK, Ireland and Northern Europe.
This project forms part of the renewable energy and infrastructure pipeline identified by Downing LLP and disclosed in DORE's prospectus dated 12 November 2020.
Tom Williams, Head of Energy & Infrastructure at Downing LLP, said: "We are delighted to sign this exclusivity agreement today with the option to co-invest with Bagnall. We look forward to commencing the imminent construction of the 16-turbine project with an operational launch date for 2023/24. Cloudberry is a leading hydropower and wind power plant expert in the Nordics and the wind farm is going to significantly improve the region's access to clean and renewable energy, supporting our mandate of investing in a diversified portfolio of high-quality renewable projects while continuing to play our part in global efforts to combat climate change."
About Downing Renewables & Infrastructure Trust plc (DORE)
DORE is a closed-end investment trust that invests exclusively in a portfolio of diversified Renewable and Infrastructure assets located in the UK, Ireland and Northern Europe. DORE's strategy, which focuses on diversification, is designed to increase the stability of revenues and reduce seasonal variability and enhance returns by making some investments into assets that are in construction or are construction-ready. For further details please visit www.doretrust.com
|About Downing LLP|
Downing LLP is a London-based investment management firm. It has over 25,000 investors and has raised over £1.7 billion into businesses across a range of sectors, from renewable energy, care homes, health clubs, and children's nurseries, to technology and sports nutrition. Downing has a demonstrable track record in renewables, having made 116 investments into solar parks, wind farms and hydroelectric plants since 2010. For further details please visit www.downing.co.uk
About Cloudberry Clean Energy
Cloudberry Clean Energy AS is a Nordic renewable energy company. We own, develop and operate hydro power plants and wind farms in Norway and Sweden. Our purpose is to provide clean renewable energy for future generations, developing a sustainable society for the long term and creating value for our stakeholders. We believe in a fundamental long-term demand for renewable energy in the Nordics and Europe. Our purpose shapes every aspect of how Cloudberry operates.
Cloudberry has a strong commitment to local communities. Our integrated value chain approach ensures local presence and optimisation of stakeholder alignment and value creation. Our long-term growth strategy rests upon our ability to create value for stakeholders, and our ability to use the best possible technology available, bring down costs, improve sustainability and make an important contribution to the necessary European energy transition. We will realise growth through organic greenfield development and by taking part in structural development of the Nordic renewable energy industry.
We are a public Euronext Growth company supported by strong owners and led by an experienced management team and board. Our offices are in Oslo, Norway (main office) and Karlstad, Sweden. To learn more about Cloudberry, go to www.cloudberry.no
Source: TB Cardew
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