Magnora confirms Swedish wind agreement

In: Windfarms
Magnora ASA, a Norwegian offshore energy investment company, has confirmed an agreement announced earlier this year relates to the Swedish Sydkustens Vind offshore wind farm.

The transaction was
first reported in March 2020 when Magnora signed final transaction agreements for an undisclosed 500 MW shallow water offshore wind project.

This transaction has now been revealed to involve purchase of a 2% stake in Kustvind, the owners of
Sydkustens Vind, in exchange for funding the feasibility study period. Magnora then has the option to acquire up to 50% of the company through a detailed milestone plan.  

The project is located in an area of good wind conditions, close to infrastructure, and with attractive electricity prices. Magnora foresees specific demand for green electricity from industry/house builders - this may be early evidence of a Power Purchase Agreement in the works.

The maximum total investment by Magnora in the feasibility period is approximately NOK 1,500,000, with a first tranche of approximately NOK 500,000, to be paid upon commencement.

Magnora intends to finalise the initial feasibility study 'over the next months', as opposed to the original schedule of April 2021.

The planned project is estimated to produce more than 2 TWh per year delivering power to approximately 250,000 households, in a region with high demand and low supply of green electricity.

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