L&G NTR Clean Power Fund makes significant windfarm acquisition in Finland

The Luxembourg-based Fund invests in clean power infrastructure assets across wind, solar and energy storage, putting private capital to work to drive Europe’s decarbonisation and energy security agenda. It is classified as an Article 9 fund under the European Union’s Sustainable Finance Disclosure Regulation.

Situated in the municipality of Haapajärvi in Finland’s Northern Ostrobothnia province, Pajuperänkangas windfarm has been in construction since 2022 and is scheduled to achieve commercial operations (COD) in the coming months. The asset is the Fund’s first windfarm investment located in Finland, although NTR has been active in the country since 2019.  The project diversifies the portfolio geographically, further supporting the Fund’s drive behind Europe’s transition to clean energy. 

Having been acquired from ABO Wind AG, a German project developer for renewable energy, the 86.8 MW project will provide clean energy for the equivalent of 36,800 homes across Finland once fully operational. Purchase power agreements (PPA) are in place with Grundfos, the Danish pump manufacturer, and Statkraft AS, the Norwegian energy generator. 

Financed by NORD/LB, one of the leading German commercial banks, this latest acquisition through the L&G NTR Clean Power (Europe) Fund will feature 14 V162 wind turbines manufactured by Vestas Wind Systems with a tip height of 250m, enabling critical clean energy supply and supporting the region in its decarbonisation targets. 

The deal marks the first transaction between NTR and ABO Wind. Under NTR guidance, ABO Wind will continue to be involved in the project, playing an asset management role for the next 10 years. 

Anthony Doherty, Chief Investment Officer, NTR, commented: “It is hugely exciting to be diversifying into wind assets and entering a new geographical market for the Fund, further expanding NTR’s presence in Finland. With Commercial Operations Date due in the coming months, the team has worked hard to ensure the timely delivery of this project enabling significant contributions to the country’s clean energy transition as well as the potential to provide almost immediate returns to investors. Following the addition of three solar projects in Spain and a wind project in France earlier this year, we are continuing to hit significant milestones for the Fund as we work closely with LGIM to deliver new clean energy projects across Europe.”

Bill Hughes, Global Head of Real Assets, LGIM, said: “Expanding our portfolio and reach with the Pajuperänkangas windfarm is a really positive step for the Fund, demonstrating our continued strong pipeline of capital deployment. Clean power assets remain an essential lever in the energy transition. With their combination of resilient cashflows - underpinned by robust fundamentals - and sustainability credentials, we believe the asset class offers institutional investors a compelling opportunity. As the need for investment in clean power intensifies, we will continue to build on our positive momentum with NTR, providing investors with exposure to assets which sustainably meet Europe’s energy needs.”

Susanne von Mutius, Managing Director, Project Finance and Sales ABO Wind AG, said: “We are delighted to complete the sale of Pajuperänkangas to NTR and to be partnering alongside them, working hard to support Europe’s transition to clean energy. We have operated in Finland’s wind sector since 2013, realising twelve projects in Finland, which have strengthened the country’s green energy transition and security of supply.”

DLA Piper acted on behalf of the Fund as legal advisor, with K2 Management providing technical advice. 

In April 2023, LGIM and NTR announced that €390 million in committed capital and co-investment opportunity had been raised in the Clean Power (Europe) Fund.