UK Green Investment Bank (GIB) and KKR have committed £82.7 million of senior debt to the consented 52.9MW Blackcraig wind farm via Temporis Capital LLP – GIB is contributing £49.5 million of the total finance package.
The 23-turbine project, located in Dumfries and Galloway, is owned by project sponsor Blue Energy. Once operational, it is expected to produce more than 150 GWh of renewable electricity annually, enough to meet the electricity requirements of over 37,500 homes.
The project is also forecast to reduce greenhouse gas emissions by around 25 kt CO2e per annum; the equivalent of removing 11,200 cars from the road.
Construction of the wind farm will commence in January 2016 with completion scheduled by the end of March 2017.
A community fund, established by Blue Energy and managed with local representatives, will support local initiatives throughout the 25-year operational life of the wind farm.
Ed Northam, Head of Investment Banking, UK Green Investment Bank, said:
The Blackcraig wind farm has the capacity to provide 37,500 homes with renewable energy for 25 years. We congratulate Blue Energy on reaching financial close and are pleased to play our part in helping the project to happen.
David Watson, CEO, Temporis, said:
We are delighted to be contributing further to the UK’s renewable energy production and commitments, particularly in light of the landmark agreement reached in Paris, and look forward to working with Blue Energy to bring the project to fruition.
Christopher Dean, CEO, Blue Energy, said:
In what has been an eventful year for UK renewables we are delighted to secure this funding from Temporis, GIB and KKR. Whilst the funding environment remains challenging this financing completes a very successful year for Blue Energy who now have just over 250MW of onshore wind projects in construction throughout the UK.