Aquila Capital Acquires Rights for 400 MW Wind Project in Norway

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Aquila Capital has acquired all shares in Øyfjellet Wind AS, which holds the rights to establish wind farm Øyfjellet with a capacity of 400 MW in Norway.

Aquila Capital has acquired all shares in Øyfjellet Wind AS, which holds the rights to establish wind farm Øyfjellet with a capacity of 400 MW in Norway. Through a press release on July 12, 2019, Eolus made public a conditional agreement with Aquila Capital regarding the sale of wind farm Øyfjellet. The conditions in the agreement have been fulfilled and the buyer has now acquired all shares in the project company.

The transaction covers the sale of 100 percent of the shares of the project company that holds all the project rights for the wind power project, including a 15-year power purchase agreement (PPA) with Alcoa Norway. The parties have signed a construction management agreement by which Eolus will manage the construction of the wind farm on behalf of Aquila Capital. The completion of the wind farm is expected during the autumn of 2021. Eolus has also been entrusted to provide technical, operational and administrative services for fifteen years to the wind farm to maximise outcome and production from the facility. The construction of the wind farm will be financed by Aquila.

Revenues and costs for the project will be accounted for by Eolus according to the percentage of completion method. The total preliminary revenue will amount to EUR 441 million. Eolus total revenue under the agreements is based upon the parties’ joint schedule and budget. The revenue may deviate upwards or downwards substantially from the budget that was communicated through a press release on July 12, 2019. Final purchase prices will be determined upon completion, which is planned during autumn of 2021. The construction is financed in full by the buyer.

The transaction is still subject to fulfilment of conditions regarding the MTA-plan granted by the Norwegian Water Resources and Energy Directorate (NVE) on December 18, 2019, gaining legal force and a signed turbine supply agreement at a later date.

The project company has signed a balance of plant agreement with Veidekke for construction of the wind farm which will be fully valid when the MTA plan gains legal force. An agreement has also been signed with Helgeland Kraft for a grid connection at the national grid substation in Marka.