Keppel Corporation BN4 and Keppel Infrastructure Fund Management (KIFM), as trustee-manager of Keppel Infrastructure Trust (KIT) A7RU , have announced their joint acquisition of a 16.3% stake in a Swedish wind farm for €4.7 million ($6.9 million).
Keppel and KIT’s stakes are 2.9% and 13.4% of Fäbodliden II, a 17 megawatt (MW) Swedish onshore wind farm respectively, with the remaining 83.7% owned by Kommunal Landspensjonskasse (KLP), MEAG MUNICH ERGO Asset Management GmbH (MEAG) and Fred. Olsen Renewables AS (FORAS).
This acquisition follows the announcement made in July 2022, when Keppel and KIT jointly invested alongside KLP and MEAG, each for an approximate 33.33% stake in a joint investment vehicle, for a 49% share of an initial portfolio of onshore wind energy assets across Norway and Sweden sponsored by FORAS, which was completed on 8 September 2022.
As part of that deal, Keppel, KIT, KLP and MEAG also have the exclusive right and obligation to co-invest in 49% of all of FORAS’ eligible pipeline of onshore wind energy assets — a total of 1.2 gigawatts (GW) as at Dec 31, 2022 — in Sweden and the UK when the assets achieve final investment decision.
Fäbodliden II, which is located approximately 20 km northeast of Vindeln Municipality in Sweden, is part of this eligible pipeline of assets. Fäbodliden II is currently at an advanced stage of development and is expected to be completed in 2H2023.
Loh Chin Hua, Keppel CEO, says: “Amidst global efforts to decarbonise and the increasing demand for renewable energy, Keppel is expanding our involvement in the renewable energy space, in line with Keppel’s Vision 2030 goal to grow the group’s portfolio of renewable assets.
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“This investment, made alongside KIT, reflects our asset-light strategy and will contribute to the group’s recurring income when the wind farm is completed,” he adds.
Meanwhile, Jopy Chiang, CEO of KIFM, says: “We are very happy to make progress in growing our renewable energy portfolio through this partnership with Keppel, as well as KLP and MEAG. Fäbodliden II is the first of the eligible wind assets from FORAS that KIT will be acquiring as part of this partnership.”
Adds Chiang: “When completed, this asset will increase KIT’s exposure to the green infrastructure segment and increase our exposure in the renewable energy sector to 740 MW in operating capacity, contributing to KIT’s 25% renewables target by 2030 based on its equity adjusted assets under management (AUM).”
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The transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel Corporation and KIT for the current financial year.
Shares in Keppel Corp closed 1 cent or 0.16% up at $6.43 on May 11, while shares in KIT closed flat at 48.5 cents.
