Acquisition of Irish Solar Farms
2 February 2024
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
Acquisition of Irish Solar Farms
The Board of ORIT today announces that it has completed the acquisition of four newly-constructed solar farms located close to Dublin, Ireland.
The solar complex totals 199MW and was acquired from Statkraft Ireland Limited, which developed and constructed the projects under ORIT's oversight. Following the acquisition, ORIT's total capacity of operational renewable energy assets reaches 735MW.
The sites generate enough green energy to power around 50,000 homes and will avoid the equivalent of around 60,000 tonnes of carbon dioxide emissions every year.
The solar farms were originally subject to a conditional agreement between ORIT and Statkraft Ireland Limited, with completion subject to the sites becoming fully operational. They entered commercial operations in late December 2023, following which ORIT has now completed the acquisition. The total acquisition cost of €160m was in part financed using a €80.6m debt facility provided by Allied Irish Banks and La Banque Postale.
As announced in November 2022*, Microsoft has entered into a 15-year Power Purchase Agreement (PPA) to offtake the electricity produced at the solar farms, securing future revenue for ORIT from the solar complex.
A nearby fifth site totalling 42MW is currently under construction and is expected to become operational during Q3 2024. Under a similar arrangement to the first four sites, ORIT will acquire this project once it becomes operational, expected to be around Q3 2024, and this will be partly funded through an increase to the debt facility by up to €25.8m, which has been pre-agreed with the lenders.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented: "We are pleased to have completed this substantial acquisition, which sees ORIT become the owner of Ireland's largest solar complex which will deliver a substantial amount of green electricity. Projects like this are vital to accelerating the journey to net zero. We have been delighted to partner with Statkraft as a highly experienced developer and Microsoft as the offtaker."
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 |
* Further information on Microsoft's support for decarbonisation of Ireland's energy grid can be found 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 £6.0 billion of assets under management (AUM) (as of September 2023) across 16 countries and total 3.3GW. These renewable projects generate enough green energy to power 2.4 million homes every year, the equivalent of taking over 1.2 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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