Downing Renewables &Infrastructure Trust plc (“DORE”) has signed an exclusivity agreement with Bagnall Energy Limited (“Bagnall”) in relation to a proposed investment in a 100 MW nearshore, shallow water wind farm to be constructed in Lake Vänern in southern Sweden (the “Wind Farm”), developed by Cloudberry Clean Energy AS (“Cloudberry”).
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 owningc.40% and 20% respectively. Confirmation of the acquisition is expected to be announced in the summer of 2021.
The 100MW 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 December2020, 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."