DORE signs exclusivity agreement for Lake Vänern wind farm
(DORE ) has signed an exclusivity agreement with UK-based renewable energy firm Bagnall Energy for a proposed investment in a 100 MW nearshore, shallow water wind farm to be constructed in Lake Vänern in southern Sweden.
The London-listed investment trust, which invests exclusively in a portfolio of diversified renewable and infrastructure assets, told investors that the exclusivity agreement gives it the option to enter a commitment for the Wind Farm once certain conditions have been met.
Once these conditions have been met, Downing would own around 40% of the project, with Bagnall and Cloudberry owning around 40% and 20%, respectively. The company detailed that the confirmation of the acquisition is expected to be announced in the summer of 2021.
The 100 MW wind farm project in Lake Vänern, which is the second wind farm on the lake, includes 16 turbines with an estimated annual power production around 350 GWh, significantly strengthening the access to clean and renewable energy in the region.
Shares in Downing Renewables & Infrastructure Trust have traded strongly since its IPO last month, trading within a range of 98p and 100p to open 0.53% lower this morning at 98.97p.
DORE, which previously raised £122.5 million in its IPO on the London Stock Exchange in December 2020, is targeting investment in a diversified portfolio of renewable energy generating assets and other infrastructure assets in the UK, Ireland and Northern Europe.
This project forms part of the renewable energy and infrastructure pipeline identified by Downing LLP and disclosed in DORE's prospectus dated 12 November 2020.
"We look forward to commencing the imminent construction of the 16-turbine project with an operational launch date for 2023/24,” said Tom Williams, Head of Energy & Infrastructure at Downing LLP.
He added, “Cloudberry is a leading hydropower and wind power plant expert in the Nordics and the wind farm is going to significantly improve the region's access to clean and renewable energy, supporting our mandate of investing in a diversified portfolio of high-quality renewable projects while continuing to play our part in global efforts to combat climate change."
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