Neoen and Prokon sign a second PPA with Equinix in Finland for at least 42 MW of wind energy

Neoen (ISIN: FR0011675362, ticker: NEOEN), one of the world’s leading producers of exclusively renewable energy, and Prokon, a large renewable energy cooperative, are announcing the signing of a new power purchase agreement (PPA) with Equinix, the world’s digital infrastructure company, to provide at least 42 MW of green energy in Finland. This is the second PPA signed by Neoen and Prokon with Equinix, and it will provide renewable energy for the firm’s locations in all five of the company’s International Business Exchange (IBX) data centers in Finland.

Under the 10-year agreement, Equinix will purchase 80% of the green energy and guarantees of origin to be produced by the new Lumivaara wind farm. Located in the Finnish municipality of Hyrynsalmi, in the central region of Kainuu, Lumivaara will comprise nine wind turbines, with a total capacity of at least 53 MW. Construction is scheduled to begin in 2023, with commissioning to follow in early 2025. Neoen owns an 80% stake in the project, the remaining 20% being owned by Prokon, the original developer of the project.

The green energy contract signed with Equinix is partially indexed to market prices. It is Neoen’s eighth corporate PPA in Finland since 2018, proof of the company’s attractiveness to significant international businesses like Equinix, the first data centre company in the world to set a 100% renewable energy target, achieving 95% renewable energy globally in 2021. Equinix also expanded the scope of its climate commitments in 2021 to include both a validated science-based target and a goal to reach climate neutrality across its operations by 2030. This latest renewable energy PPA brings Equinix’s total capacity under long term contract globally to 297 MW.

Prokon has been active in Finland since 2011, with a wind power project development portfolio of over 900 MW in advanced stages of development. The Lumivaara wind farm (53 MW) is the embodiment of the vision of Prokon – one of the country’s leading renewable energy developers – to be a trusted partner for delivering renewable energy to a sustainable society.

Neoen has been present in Finland since 2018 and has built up a large portfolio of assets, including the Hedet wind farm (81 MW) and Yllikkälä Power Reserve (30 MW / 30 MWh battery storage), both now in operation, as well as the Mutkalampi (404 MW) and Björkliden (40,4 MW) wind farms, which are currently under construction. The Lumivaara wind farm (53 MW) reaffirms Neoen’s status as one of the country’s leading and fastest growing renewable energy producers, with around 600 MW of secured capacity in the country.

Jerri Loikkanen, Managing Director of Neoen Finland: “We would like to thank Equinix for their continued trust. We now have eight PPAs in Finland, two of which are with Equinix, and this highlights our significant role in working towards carbon neutrality in the country. While energy independence has never been more topical in Finland, we take pride in our contribution to Finnish autonomy made by our wind farms across the country.”

Jakob Kjellman, Director of Prokon Finland: “Signing the PPA is an important milestone for Prokon. We are extremely grateful for the trust placed in us, not only by our business partners but also by the landowners and the Hyrynsalmi municipality, who supported Prokon in initiating the project in 2016 and who accompanied Prokon in our joint effort to develop renewable energies in Finland.”

Henning von Stechow, CEO of Prokon Regenerative Energies eG, the German parent company of Prokon Wind Energy Finland Oy: “The successful PPA in partnership with Neoen is further proof that renewable energy projects are competitive, even without government subsidies. Projects like Lumivaara are successful when partners use their respective skills in a targeted manner and work together constructively. Only together can we advance the energy transition worldwide and protect the climate effectively. Finland is a high-potential market for Prokon. We are currently planning around 10 additional wind farm projects in Finland, with a total output of up to 1,000 MW.”

Sami Holopainen, Managing Director, Finland at Equinix: “Finland is fast becoming a world leader in environmental sustainability and at Equinix we are proud to play a significant role in that story. I’m delighted to sign our second power purchase agreement with Neoen and Prokon, quickly following the agreement we executed in December last year to take more than 30 MW from their Björkliden wind farm. By bringing our total renewables purchasing to over 75 MW in Finland, Equinix is once again leading the way in its support of the renewables industry, reaffirming its commitment to more sustainable power generation, and taking yet another significant step towards accomplishing our pledge to become climate neutral globally by 2030.”

Xavier Barbaro, CEO and Chairman of Neoen: “I would like to congratulate our teams in Finland for this new achievement. We are proud to continue expanding our asset portfolio in Finland, already our third largest country. This new contract further demonstrates our ability to deliver value for companies like Equinix, which are seeking to secure a supply of competitive, local renewable energy. Corporate PPAs are one of the biggest growth areas for our company in Europe and in the rest of the world and will be an important share of our target of 10 GW in operation or under construction by the end of 2025.”