Renewable Power Capital marks first investment with commitment to acquire a portfolio of Nordic onshore wind projects from OX2

Renewable Power Capital (“RPC”), the renewable energy investment platform backed by Canada Pension Plan Investment Board (CPP Investments), has made its first investment by committing to the acquisition of a 100% ownership interest in a 171MW portfolio of onshore wind projects from OX2, a leading developer and constructor of large-scale onshore wind power in Europe, in a transaction valued at €245 million. 

Two of the wind farms, Puutikankangas in North Ostrobothnia and Rustari in South Ostrobothnia, are ready-to-build today. When all three wind farms are commissioned as planned in 2022, the portfolio is expected to produce close to 590 GWh per year, equivalent to the electricity consumption of approximately 118 000 households.

RPC has a long-term investment strategy, flexible capital and deep domain expertise. This transaction with OX2 showcases the company’s ability to move swiftly and decisively in executing acquisitions, delivering speed, execution certainty and value, prior to optimizing the power contracting and long-term debt financing.   

Bob Psaradellis, CEO, Renewable Power Capital, said: “We are pleased to announce this acquisition as our debut investment in one of our target markets, with a best-in-class partner. The investment is a good example of our long-term investment strategy.  Finland is an attractive market, given the strong wind resource, depth of Nord Pool, and ongoing corporate power purchase agreement activity.  OX2 has an excellent track record developing high-quality, well-optimized wind projects that deliver a low levelized cost of energy and can compete without subsidies. We look forward to building on this in the years to come.”

Shaun Kingsbury, Chairman, Renewable Power Capital, commented: “I am so pleased that we have been able to make our first investment so quickly after our incorporation, we look forward to working with OX2 on the construction of the projects.”

Paul Stormoen, CEO, OX2, said: “We are very pleased to be partnering with Renewable Power Capital for the construction of these wind farms. OX2 remains firmly committed to leading the ongoing energy evolution and, with today’s announcement, have started construction of a total of 11 wind farms in Finland. This is the second time in 12 months we have selected GE Renewable Energy to supply turbines to our projects and we are happy to see their focus on turbines suitable for the Nordic climate.”

Klara Wennström, Transaction Manager, OX2, commented: “In recent months we have established a good working relationship with RPC and are happy to have been able to complete this transaction. We are now looking forward to our continued collaboration and the construction of the projects.”

RPC was launched in December 2020 and aims to enable the energy transition through a patient, long-term investment strategy underpinned by an innovative approach to managing development and merchant risk.

OX2 is currently constructing 4 wind farms in Finland (235 MW) and developing a substantial portfolio of projects for the coming years.

More information about the wind farms:

• At the Puutikankangas wind farm in the North Ostrobothnia region, Municipality of Sievi, 8 turbines (44 MW) will be built. Turbines:  GE Hybrid towers – GE 158 5.5MW, tip height 240m
• Rustari wind farm in the South Ostrobothnia region, Municipality of Kurikka, 8 turbines (44 MW) will be built. Turbines: GE 158 5.5 MW, tip height 230m
• Main contractors; Supplier of groundwork and foundations: Suvic for Puutikankangas and Tallqvist for Rustari. Substations: VEO Oy, Transformers: Koncer Oy