VALOREM and Octopus Energy Investments (OEI) have entered into a joint venture for the construction and operation of 71.4MW of wind capacity in Finland. The deal covers two wind farms in the south-west of Finland called Saunamaa and Suolakangas. VALOREM developed these wind farms together with local partner Megatuuli. The project represents a first Nordic transaction and first unsubsidised onshore wind development for OEI.
While maintaining a minority stake, VALOREM will manage construction and operation of both wind farms through its subsidiaries VALREA, VALEMO and its local partner Megatuuli. The deal will be VALOREM’s first investment and construction in the Finnish market, leveraging its international experience from wind farm development, construction and operation. Seventeen Vestas V150 4.2 MW turbines with tip heights of up to 230m will be constructed with total expected annual generation of 280GWh. These assets represent an investment of c. €80M.
OEI is a UK-based fund management business with c.£8billion of funds under management and with a focus on renewable energy. Its move into Finland builds on the company’s track record in Europe and Australia, where it has attracted significant retail and institutional funds since entering the UK renewables market in 2010. Since then, OEI has accelerated the growth of local renewables markets by providing flexible funding opportunities to support the development, construction and long-term management of assets.
Jean-Yves Grandidier, founder and president of VALOREM said: “We are very pleased to initiate the construction of our first Finnish wind farms. We continue our strategy as an independent power producer and look forward to a successful partnership with Octopus. These two projects mark the beginning of a successful platform for VALOREM in the Nordics with a portfolio of 700MW+ of assets under development with Megatuuli. We have been able to take advantage of a site with very good characteristics which will allow us to sell electricity directly to the market. However, from a long-term point of view a price mechanism will be necessary for the successful development of wind power and the accomplishment of EU objectives. ”
Alex Brierley, Co-Head of OEI said: “We continue our rapid growth within renewable energy and are pleased to enter the Nordic market via this partnership with Valorem. Our mission is to accelerate the transition to a future powered by renewable energy and this milestone project shows our ability to broaden and scale our existing experience to other European markets.”
He continued: “We are also delighted to be partnering with Valorem in what represents a landmark deal for us both, bringing our combined experience and skillsets to Finland for the first time.”
Lauri Lammivaara, Managing Director of Megatuuli said: “We are very proud of these wind farms and these are amongst the most productive wind farms in Finland, with estimated net capacity factor of around 45%. Megatuuli is also committed to assist during construction and operational phases.”
Construction will start immediately, and the wind farms are expected to be in commercial operation by late 2020.
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Notes to editors
This press release is issued by Octopus Investments Limited which is authorised and regulated by the Financial Conduct Authority. The information contained within this document does not constitute an offer or inducement to participate in a collective investment scheme, alternative investment fund or any other financial product and may not be treated as an offer or inducement in any jurisdiction where such an offer or inducement is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The value of investments, and the income from them, may fall or rise. The information in this document should not be construed as offering investment or tax advice. Issued: February 2019
About Octopus Group
Octopus Energy Investments is a specialist clean energy investor and our mission is to accelerate the transition to a future powered by renewable energy. We have a diverse portfolio of assets with a capacity of over 2.3GW, making us the UK’s largest non-utility investor in onshore renewables, and the largest commercial solar player in Europe. We believe there is a significant opportunity to unblock much needed investment by building bespoke portfolios of renewable assets at scale, across technologies and countries, to create better outcomes for our investors.
Octopus is a group of innovative, entrepreneurial businesses investing in the people, ideas and industries that will help to change the world. We are experts in financial services and energy, transforming these markets by offering our customers access to smart and simple solutions that do what we say they will. Today we manage more than £7.7 billion on behalf of retail and institutional investors. Octopus Energy, Octopus Energy Investments, Octopus Investments, Octopus Healthcare, Octopus Property, Octopus Ventures and Octopus Wealth are all part of Octopus Group. Visit www.octopusgroup.com
Energy Investment at Octopus
Octopus’ mission is to accelerate the transition to a future powered by renewable energy. Since 2011, the team has built market-leading positions as an investor and manager of solar, wind, biogas, biomass, landfill gas, and reserve power assets. Octopus is the largest nonutility investor in onshore renewables in the UK, and also the largest commercial solar player in Europe.
As a specialist, innovative renewables investor, we believe there is a huge opportunity to unblock investment by building bespoke portfolios of renewables assets, at scale, and across technologies and countries, to create better outcomes for our investors.
As a green energy operator, the VALOREM group controls the entire process of developing renewable energies, from development to operation, including assistance with project management, construction and auditing. VALOREM pioneered wind power in France 25 years ago. VALOREM developed as a leading Independent Power Producer with 450 MW constructed or in construction. The asset and portfolio of Power projects was historically mostly wind powered but diversified into solar PV and more recently small Hydro. Now with 250 employees, VALOREM is headquartered in France and is also active in the Caribbean, Northern Europe, North Africa and Latin America. Since 2014, VALOREM is certified ISO 9001, ISO 14001 since 2015, and OHSAS 18001 since 2017. When developing projects, VALOREM dedicates special attention to environmental and social benefits towards local communities.
Megatuuli is Valorem’s local partner on the Finnish market. Megatuuli is a leading onshore wind farm developer in Finland with a project pipeline of about 1,000 MW in various phases of development, including the Valorem portfolio of 600 MW. The company also became an energy producer in 2016 when its first wind farm was built (the Tyrinselkä wind farm with Finland’s highest capacity factor to date, more than 45%). Since its establishment in 2010 the company has followed its targets of selecting only the best and most suitable areas for wind farms and developed those with professional manners and high local knowledge and presence
The following advisors led to the success of this transaction: NEWSEC as financial advisor to VALOREM, WATSON FARLEY & WILLIAMS, KROGERUS and HPP as legal advisors to VALOREM, LINKLATERS as legal advisors to OCTOPUS, K2 and NATURAL POWER as Technical Advisor to OCTOPUS and VALOREM respectively.