Onshore and Offshore Wind Investments
1 6 September 2022
LEI: 213800B81BFJKWM2JV13
Octopus Renewables Infrastructure Trust plc
("ORIT" or the "Company")
Onshore and Offshore Wind Investments
Octopus Renewables Infrastructure Trust plc is pleased to announce two new investments in the UK and Germany.
Lincs Offshore Wind Farm, UK
ORIT has acquired a further 7.75% ownership interest in the Lincs Offshore Wind Farm ("Lincs") from a fund managed by Macquarie Asset Management. This follow-on investment adds to the original 7.75% stake in this wind farm that ORIT acquired in May 2022.
Lincs, located off the east coast of England, has been operational since 2013 and has long-term fixed price inflation linked revenue arising from the UK's ROC (Renewables Obligation Certificate) regime, under which the wind farm receives 2 ROCs per megawatt hour of electricity generation during the first 20 years of operation. The wind farm has an installed capacity of 270MW, made up of 75 turbines each of 3.6 MW spread across c.35 square kilometres. Lincs is operated and managed by Ørsted, the largest energy company in Denmark, and a leading developer and operator of offshore wind farms in the UK and globally.
Following this transaction, Lincs represents approximately 16% of ORIT's portfolio on a gross asset value1 basis.
ORIT's investment comes alongside a co-investment fromanother fund managed by Octopus Energy Generation, Sky (ORI SCSp), which hasacquired a 7.75% indirect stake in Lincs as part of this transaction. Following this transaction, funds managed by Macquarie Asset Management retain a 44% stake in Lincs.
Leeskow Onshore Wind Farm, Germany
In a separate transaction, ORIT has agreed to acquire the Leeskow Onshore Wind Farm ("Leeskow") from German developer UKA. Leeskow, a 34.6MW operational wind farm located in Brandenburg, north-east Germany, consists of seven Nordex N149 turbines, one of which was commissioned in August 2020, due to receiving its permit earlier than the remaining six which were commissioned in August and September of this year. Leeskow benefits from a government backed floor price for twenty years under the German EEG regime. The investment is not exposed to movements in or caps of wholesale power prices in the short to medium term.
Leeskow has existing long term debt funding with fixed interest rates, and completion is expected to occur in Q4 2022 upon receipt of consent from the lenders for the change in ownership. Upon completion, Leeskow will represent approximately 8% of ORIT's portfolio on a gross asset value 1 basis.
In connection with these acquisitions, a subsidiary of ORIT has entered into a £50 million debt facility with existing lender Natwest. The facility matures in November 2023 to align with ORIT's existing revolving credit facility.
Phil Austin, Chairman of Octopus Renewables Infrastructure Trust plc, commented:
"Wind energy is a vital pillar of both the UK and the EU's energy systems. Today's investment in the Lincs Offshore Wind Farm takes ORIT's position in this significant operational offshore wind farm asset to 15.5% and our commitment to Leeskow marks our first investment into German onshore wind."
Chris Gaydon, Investment Director at Octopus Energy Generation, commented:
"These acquisitions of operational assets further increase the diversification in ORIT's portfolio including adding a new country. Both assets add to the proportion of fixed-price power revenues in the portfolio, with the Leeskow acquisition based on power prices well below the cap recently announced by the EU."
For further information please contact:
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Octopus Energy Generation (Investment Manager) Matt Setchell, 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, Hannah Ratcliff, George Beale
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020 7466 5000 |
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Sanne Fund Services (UK) Limited (Company Secretary)
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020 3327 9720 |
Notes:
1. A measure of total asset value including debt held in unconsolidated subsidiaries, but excluding any outstanding equity or debt commitments.
About Octopus Renewables Infrastructure Trust
Octopus Renewables Infrastructure Trust (ORIT) is a 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. ORIT's investment manager is Octopus Energy Generation.
Further details can be found at www.octopusrenewablesinfrastructure.com
About Octopus Energy Generation
Octopus Energy Generation ("OEGEN") is driving the renewable energy agenda by building green power for the future. Its London-based, leading 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 12-year track record with approximately £4.4 billion of assets under management (AUM) (as of 30 June 2022) across 10 countries and total 3.2GW. These renewable projects generate enough green energy to power 2 million homes every year, the equivalent of taking over 800,000 petrol cars off the road. Octopus Energy Generation was previously known as Octopus Renewables.
Further details can be found at www.octopusenergygeneration.com
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