Octopus Renewables Infrastructure Trust plc, the diversified pan-European renewable energy infrastructure impact company, announces it has committed an additional €3.4 million (£2.8 million equivalent) to Nordic Generation ("Norgen"), a specialist developer focused on the Finnish wind and solar market, to build on the strong progress already achieved by the asset and to support its Phase 2 pipeline.
As part of the transaction, ORIT's existing 50% holding in Nordic Renewables will convert into a direct 30% stake in the integrated Norgen development business. The new structure is expected to be value accretive for ORIT, with a base case increase of between £1.0 and £1.5 million, and should allow for greater range of upside for ORIT over the life of the asset.
The initial commitment of €3.4 million (c. £2.9 million) was made in April 2022 and at today's date is €2.5 million drawn. The value of ORIT's holding in Nordic Renewables was valued at €4.8 million (£4.0 million) as at 31 December 2024 - an increase of £2.0 million over the quarter. The additional funding takes ORIT's total maximum commitment to approximately €6.8 million (£5.6 million) and means that the total capacity of projects expected to reach Ready to Build stage increases to 845MW - more than double the anticipated combined capacity of 400MW originally projected.
ORIT's investment is being made alongside another fund managed by Octopus Energy Generation ("Sky" or "ORI SCSp"), which held the remaining 50% stake in Nordic Renewables and will also be taking a 30% stake in Norgen on the same terms as ORIT. The remaining 40% stake is held by the management team.
Phil Austin, Chair of Octopus Renewables Infrastructure Trust plc, commented:
"We are delighted to announce this follow-on commitment and restructuring of the Norgen investment. The Finnish developer has already made positive progress to date, with a number of projects expected to reach construction phase this year and next, having secured key permits. We believe the additional funding in this transaction will enhance generation capacity, providing much-needed clean energy. We also believe the updated ownership structure has the potential to deliver greater upside and opportunities for ORIT in future."
