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Octopus Renewables Infrastructure Trust PLC on Friday announced two new wind farm investments in the UK and Germany.
The London-based investment company focused on renewable energy infrastructure acquired a 7.8% ownership in the Lincolnshire offshore wind farm. It acquired the stake from a fund managed by Macquarie Asset Management fund. This follow-on investment adds to an original 7.8% stake acquired in May 2022.
The Lincolnshire farm has been operational since 2013 and has a long term inflation linked fixed-price because of the UK's renewables obligation certificate regime. The renewables obligation is one of the main support mechanisms for developing large-scale renewable electricity projects in the UK.
The farm is operated and managed by Orsted, the largest energy company in Denmark, and a developer and operator of offshore wind farms in the UK and globally.
In a separate transaction, Octopus Renewables has acquired the Leeskow onshore wind farm, located in Brandenburg, Germany, from German developer UKA. Leeskow benefits from a government backed floor price for 20 years under the German renewable energy sources act.
Leeskow has existing long term debt funding with fixed interest rates, and completion is expected to occur in the fourth quarter of 2022. Upon completion, Leeskow will represent approximately 8% of Octopus Renewable's portfolio in gross asset value.
In connection with these acquisitions, a subsidiary of Octopus Renewables has entered into a £50 million debt facility with existing lender Natwest. The facility matures in November 2023.
Chair Phil Austin commented: ‘Wind energy is a vital pillar of both the UK and the EU's energy systems. Today's investment in the Lincolnshire offshore wind farm takes Octopus Renewable's position in this significant operational offshore wind farm asset to 15.5% and our commitment to Leeskow marks our first investment into German onshore wind.’
Shares in Octopus Renewables were trading 1.3% lower at 114.30 pence each in London on Friday morning.
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