OX2 and DIF Capital Partners sign 63 MW wind power deal

OX2 AB (“OX2”) and DIF Capital Partners (“DIF”) are pleased to announce that DIF, through DIF Infrastructure Fund VI, will acquire 100% of two onshore wind projects in the Podlaskie and Lodz regions of Poland, with a total capacity of 63 MW. As the projects are ready to build, DIF will invest through the construction of the projects.

The wind projects, which will be equipped with Vestas V126 turbines, have been developed and will be constructed under a tailored EPC contract provided by OX2. Construction commenced upon closing of the transaction and the projects are expected to become operational by end of 2022.

Once commissioned, OX2 will be responsible for the technical and commercial management of the wind projects, ensuring that the projects generate maximum output and that they are operated in a safe and secure manner. During their operational life the projects will benefit from contracts-for-difference with the Polish state, providing stability of cash flows to the projects for a period of 15 years.

The total production is estimated to be ca. 200 GWh per year, which is the equivalent to the annual power consumption of around 50,000 households; thereby avoiding around ca. 70,000 tonnes of CO₂ emissions per year from fossil fuels. The projects will support Poland’s energy transition by expanding the country’s renewable energy capacity and reducing dependency on power production from fossil fuels.

OX2 was advised by DNB Markets (financial) and DLA Piper (legal). DIF was advised by PWC (financial), Allen & Overy (legal) and DNV (technical).

Paul Stormoen, CEO, OX2, said: “I am very happy to welcome DIF Capital Partners as a new partner with its extensive experience from long-term investments in renewable energy projects. Our partnership is a significant step in OX2’s ongoing expansion in Poland. It quadruples the amount of green energy that will be produced from the wind farms in Poland built by OX2.”

Katarzyna Suchcicka, Country Manager, OX2 Poland, said:“We are pleased to establish a relationship with DIF Capital Partners for the construction of two wind farms and through this cooperation contribute to Poland’s energy transition. Onshore wind energy is not only clean but today the cheapest source of energy which will positively impact the Polish economy. It is also an important milestone strengthening our market position in the country and reinforces our expansion ambitions.”

Christopher Mansfield, Partner at DIF Capital Partners, said: “DIF is delighted to enter the Polish renewables market throughthis new partnership with OX2 and to support Poland’s ongoing energy transition. The projects fit well within the investment strategy of DIF Infrastructure Fund VI and adds to the track record of DIF-managed funds, which have invested in c. 2.3GW of wind and solar power projects in Europe, North and South America and Australia.”

Information about the wind farm projects:

• At the Grajewo wind farm in Grajewo, Grajewo district, Municipality of Grajewo, a total of 12 turbines (40 MW) will be built. Estimated annual production: 131 GWh/year.
• Turbines: Vestas V126?3.45 MW, tip height 200m.
• Main contractors: CJR RENEWABLES (foundation, roads), Electrum Sp. z o.o. (MV network, Substation and MV/HV grid connection), Vestas (turbines supply and assembly).
   
• At the Sulmierzyce wind farm in Sulmierzyce, Krotoszyn district, Municipality of Sulmierzyce, a total of 7 turbines (23.1 MW) will be built. Estimated annual production: 68 GWh/year. Turbines: Vestas V126-3.3 MW, tip height 200m.
• Main contractors: ONDE S.A. (foundation, roads, internal grid, substation, grid connection), Vestas (turbines).