10 year PPA with Sky signed - Crossdykes Wind Farm
24 April 2024
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
10 year PPA with Sky signed at Crossdykes Wind Farm
Octopus Renewables Infrastructure Trust is pleased to announce that the Crossdykes wind farm in Lanarkshire, Scotland ("Crossdykes") has entered into a Power Purchase Agreement ("PPA") with Sky UK Limited ("Sky"). The media and telecoms corporation will purchase the majority of the electricity produced by the 46 MW wind farm. ORIT acquired 51% of Crossdykes in 2022, alongside Octopus Renewables Infrastructure SCSp (another fund also managed by Octopus Energy Generation) which acquired the remaining 49%.
The PPA will enable the sale of 69% of the output to Sky at a CPI-linked fixed price for a period of 10 years, commencing in April 2025. It will increase the percentage of ORIT's forecast revenue which is fixed over the two years to 31 December 2025 from 81% to 82%, and the percentage of forecast revenue which is index-linked over the 10 years to 31 December 2033 from 51% to 53%. The PPA is NAV-accretive when compared with the power price assumptions included in the NAV as at 31 December 2023.
The wind farm is expected to generate in total c.144 GWh of electricity every year, which is enough to power the equivalent of around 50,000 homes and avoid around 50,000 tonnes of carbon dioxide emissions every year, equivalent to planting 250,000 trees.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: "We are pleased to enter this agreement with Sky, which is a UK household name and a strong partner as part of the Nasdaq-listed Comcast Corporation. The contract underscores the strength of our Investment Manager's energy markets team as they implement our strategy to deliver a high proportion of fixed revenue and inflation linkage, providing added certainty to our portfolio for the long-term. Renewable energy supply deals with major corporations like Sky help meet vital targets to decarbonise their businesses."
For further information please contact:
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Octopus Energy Generation (Investment Manager) Chris Gaydon, David Bird
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Via Buchanan |
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Peel Hunt (Broker) Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking) Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris, Michael Bateman (Sales)
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020 7418 8900 |
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Buchanan (Financial PR) Charles Ryland, George Beale
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020 7466 5000 |
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Apex Listed Companies Services (UK) Limited (Company Secretary) |
020 3327 9720 |
Sustainable Finance Disclosures Regulation ("SFDR")
ORIT has published an updated SFDR Article 9 disclosure which is now available to download from the Company's website here.
Notes to editors
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust ("ORIT") is a premium-listed, closed-ended investment company incorporated in England and Wales focused on providing investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of renewable energy assets in Europe and Australia. As an impact fund, ORIT is helping accelerate the transition to net zero by investing in green energy, whilst also contributing to a broader set of UN Sustainable Development Goals through its impact initiatives. ORIT's investment manager is Octopus Energy Generation.
Further details can be found at www.octopusrenewablesinfrastructure.com
About Octopus Energy Generation
Octopus Energy Generation is driving the renewable energy agenda by building green power for the future. Its specialist renewable energy fund management team invests in renewable energy assets and broader projects helping the energy transition, across operational, construction and development stages. The team was set up in 2010 based on the belief that investors can play a vital role in accelerating the shift to a future powered by renewable energy. It has a 13-year track record with approximately £6.7 billion of assets under management (AUM) (as of December 2023) across 19 countries and total 3.9GW. These renewable projects generate enough green energy to power 2.4 million homes every year, the equivalent of taking over 1.4 million petrol cars off the road. Octopus Energy Generation is the trading name of Octopus Renewables Limited.
Further details can be found at www.octopusenergygeneration.com
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