OX2 nabs financing for 357-MW Swedish wind project

OX2 has announced that the financing of Valhalla project comprising 85 wind turbines has been successfully completed. Aquila Capital will acquire the project which OX2 will deliver as an EPC contract. It will be one of the largest onshore wind farms in Europe.

The wind farm will be built in the municipalities of Bollnäs and Ockelbo, in central Sweden. The permits for the park have been developed in cooperation between OX2 and Bergvik Skog.

The construction work will begin immediately, with completion of the wind farm expected in the spring of 2020. OX2 will then have a contract for technical and commercial management of the wind farm. The expected average production is more than 1.1 TWh per year. The project will be featured with a long-term power purchase agreement with a yet undisclosed, high calibre-offtaker.

The project strengthens OX2’s leading market position in the Nordic region, where the company is currently building six wind farms totalling 717 MW.

The Valhalla project is comprised of 85 wind turbines from Vestas, model V136 4.2 MW, each with a total height of 180 metres. The average wind in the area is approximately 7.2 m/sec at the turbines’ hub height. The expected average production is approximately 1.1 TWh per year, which corresponds to the annual consumption of household electricity for approximately 223,800 households (5,000 kWh per household). The wind farm is expected to be completed in the spring of 2020.

The major sub-contractors for the development of the project are: Vestas (turbines), Ellevio (national grid), Empower (ground work and foundations, site Tönsen) and Svevia (ground work and foundations, site Åmot-Lingbo).

Roman Rosslenbroich, CEO and Co-Founder of Aquila Capital said:

“Wind energy investments in the Nordics region are highly attractive investments and this project is especially remarkable due to the technical dimension and its performance features. Our proposition in the region is enhanced even further by the broad network of partnership we have built with leading market participants such as OX2 and Vestas. We are very happy about this cooperation.”

Paul Stormoen, Managing Director of OX2 Wind commented:

“This is yet another attractive project resulting from Aquila and OX2’s successful partnership in recent years. We are delighted that Aquila is continuing to invest in Nordic wind power and especially proud that we are able to deliver a project as large and efficient as Valhalla.”

Susanne Wermter, Head of Investment Management Energy & Infrastructure EMEA, Aquila Capital, commented:

“Wind projects in the Nordics are one of the pillars of Aquila Group’s real asset strategy, which underlines why this project is so special to us. It is a landmark achievement to have successfully closed one of the biggest wind projects in Europe and secure stable income for our investors through a long-term above average PPA.”