May 17, 2018 - Assignment

Vattenfall enters into partnership with Vestas and PKA regarding the construction of a 353 MW onshore wind park

Vattenfall, Vestas and PKA, a Danish pension fund, have agreed on a joint ownership of the Blakliden/Fäbodberget wind park consisting of a total of 84 wind turbines with a total capacity of 353 MW, making it one of Sweden's largest wind parks. The total investment amounts to approximately SEK 3.5 billion.

Vattenfall's ownership interest in the wind park will be 30% and Vestas and PKA shall own 70% jointly.

The wind park consists of the two areas Blakliden, located in the municipality of Åsele and Fäbodberget, located in the municipalities of Åsele and Lycksele. Construction of the wind park has started and it will be put in operation during 2021/2022. The total capacity of 353 MW is sufficient to produce renewable energy to 220,000 Swedish homes. A 20-year Power Purchase Agreement (PPA) regarding 60% of the production has been entered into with Norsk Hydro, one of the largest aluminium producers in the world. The PPA enables Norsk Hydro to fix the price for a substantial portion of the electricity demand of their manufacturing facilities, producing in total approximately 100,000 tonnes of aluminium per year. The transaction is conditional on project financing being put in place.

Vattenfall is a leading European energy company with approximately 20,000 employees and has operations mainly in Sweden, Germany, the Netherlands, Denmark, the UK and Finland. Vattenfall owns approximately 1,100 wind turbines in several different countries. Vattenfall is owned by the Swedish state.

Vattenfall was advised by Mannheimer Swartling in the transaction.