Information on the Target

Infracapital is set to acquire 100% ownership of two onshore wind projects that consist of 14 turbines, with an estimated total production capacity of around 206 GWh annually. This output is sufficient to supply electricity to approximately 120,000 homes. OX2 will retain its role as the project’s asset manager throughout both the construction and operational phases, operating under a tailored engineering, procurement, and construction (EPC) contract. The construction phase is slated to begin in Autumn 2019, with commercial operations expected to commence in the fourth quarter of 2021.

Industry Overview in Finland

Finland's energy landscape is increasingly shifting toward sustainable sources, with renewable energy accounting for roughly 40% of the country's energy consumption. The Finnish Government's National Energy and Climate Strategy aims to enhance the proportion of renewables to over 50% of energy end-use during the 2020s. This transition is crucial for Finland as it works to meet its climate targets while ensuring energy security.

The Nordic energy market is known for its efficiency and integration, facilitating a strong reliance on renewable resources. Wind energy, in particular, has gained traction, with investments in this sector steadily increasing. The region has favorable conditions for wind power generation, making it a pivotal player in the push toward a low-carbon economy.

Moreover, the Finnish government has fostered an encouraging environment for renewable energy investments through various initiatives, aiming to attract both domestic and international investors. The country's strategies are designed to showcase its commitment to sustainability and appeal to investors looking for green opportunities.

The Rationale Behind the Deal

This investment marks a significant advance in fulfilling Finland's investment needs for sustainable energy infrastructure. By supporting the integration of more renewable energy into the grid, Infracapital is strategically positioning itself within a growing market that aligns with future energy demands. The partnership with OX2 facilitates an expedited path to scaling up capacity while reinforcing Finland's long-term energy strategy.

Information About the Investor

Infracapital is a prominent infrastructure investment firm, with a strong focus on greenfield projects that support sustainable economic growth throughout Europe. The acquisition represents Infracapital Greenfield Partners Fund I LP’s inaugural project in the Nordics, highlighting the firm’s commitment to energizing the transition toward greener infrastructure solutions.

Michele Armanini, Managing Director at Infracapital, emphasized the firm’s dedication to partnering with leading developers like OX2 to deliver sustainable value to investors while contributing significantly to renewable energy efforts in Finland.

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This investment opportunity appears to be a sound decision for Infracapital, as it aligns with their strategic objectives while also addressing a crucial need in Finland’s energy sector. The emphasis on sustainable practices not only meets current market demands but also prepares the firm for long-term growth within the increasingly competitive renewable energy landscape.

Moreover, collaborating with a well-established developer like OX2 enhances the project’s viability. OX2's proven track record in successfully developing wind energy projects without subsidies indicates a robust operational framework, further mitigating investment risks.

As Finland continues to push for increased renewable energy production, this partnership strategically positions Infracapital within a high-growth sector, suggesting that this deal could yield substantial returns in alignment with shifting energy consumption patterns and government policies.

Overall, the investment in wind energy infrastructure in Finland not only represents a commitment to sustainability but also reflects a thoughtful approach to capturing emerging market opportunities. As such, it stands as a potentially lucrative investment for Infracapital.

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