Last week, Downing LLP entered into an exclusivity agreement with Cloudberry Clean Energy AS to buy a significant majority interest in a 100-MW nearshore, shallow water wind farm to be built in Lake Vänern in southern Sweden. The transaction is expected to close in the first half of 2021.
Cloudberry’s estimated value realization for the development of the project is around NOK3 million (US$ 3.3 million) per megawatt, including Cloudberry’s project development fee. About one-third of the value is expected to be paid in the first half of 2021 and the remaining two-thirds at project commissioning in 2023/2024.
A due diligence process has been initiated and the parties intend to sign a share purchase agreement (SPA) by the end of this year, according to a press release
Construction of the 16-turbine project is anticipated to commence in 2021. Once fully developed, the wind farm will significantly improve the region’s access to clean and renewable energy, Downing said.
“Downing has been making investments in renewable energy for over a decade and has a wealth of relevant experience,” said Henrik Dahlström, investment director at Downing LLP. “We are pleased to be partnering with Cloudberry on this landmark project and contributing to the growth of renewable energy generation in Sweden.”