Cloudberry and Downing ink nearshore agreement

In: Windfarms
Cloudberry Clean Energy AS (Cloudberry) and Downing LLP (Downing) have entered into an exclusivity agreement for the construction and ownership of a 100 MW nearshore, shallow water wind farm in Lake Vänern in southern Sweden.

A due diligence process has been initiated and the parties intend to sign a share purchase agreement (SPA) by the end of this year. Financial close is expected in first half of 2021.

“We are very pleased to cooperate with such an experienced infrastructure investor as Downing LLP. The project partnership is an important step towards fulfilling Cloudberry’s growth ambitions within shallow water wind power. It also shows our ability to realise significant value from our large pipeline of projects under development”,
says Anders Lenborg, Chief Executive Officer of Cloudberry.

Downing LLP is an FCA authorised and regulated investment manager with over 30 years’ experience and, as at 31 July 2020, has over £1 billion of funds under management. Downing’s energy & infrastructure business comprises 25 specialist investment and asset management professionals managing more than 80 investments across five different renewable energy technologies.

Henrik Dahlström, Investment Director at Downing says: “Downing has been making investments in renewable energy for over a decade with a wealth of experience. We are pleased to be partnering with Cloudberry on this landmark project and contributing to the growth of renewable energy generation in Sweden.”

Based on the signed term sheet, Cloudberry’s estimated value realisation for the development of the 100 MW project is around NOK 3 million per MW, including Cloudberry’s project development fee. Around 1/3 of the value is expected to be paid in first half of 2021 (not subject to any subsequent adjustments but pending final grid confirmation) and the remaining 2/3 at project commissioning in 2023/2024.

“Cloudberry’s development offshore strategy is to secure financing and construction through a partnering model. Cloudberry’s specialized development competence, local presence and the construction licenses are the company’s key value contributions to shallow water projects. This partnership with Downing, where Cloudberry will participate with a 20% ownership stake, is an excellent example of this”,
says Anders Lenborg.

Nordic renewable energy company  Cloudberry recently announced its ambition to develop 2,500 MW of offshore wind power in Sweden by 2030 based on a portfolio of fresh water and Baltic Sea shallow water projects.

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