Cloudberry Clean Energy, through its subsidiary Odin Energy, has signed a term-sheet agreement with Skovgaard Energy to acquire the 210MW solar and wind hybrid Nees Hede project in Denmark. The site represents an important milestone as the first scheme from the development agreement with Skovgaard, Cloudberry said. Cloudberry will acquire the development and grid rights and the land access to the Nees Hede project from Skovgaard through the Odin portfolio. Nees Hede is a climate park with a favourable ESG footprint and local acceptance, situated on the western part of Jutland in the attractive DK 1 price area, Cloudberry said.
The project consists of 140MW of solar capacity proportionate to Cloudberry of already environmentally permitted capacity. All projects’ rights will be transferred into Odin with a corresponding land lease agreement of 30 years with an additional option of another 30 years. Furthermore, Skovgaard and Cloudberry will continue the development project with an aim to reach a permit for wind production in combination to the permitted solar. If a final investment decision (FID) is taken for the scheme, the land for the wind site will be acquired by Nees Hede at a pre-determined price. The complete project is estimated to be approximately 210MW, with 168MW proportionate to Cloudberry which will be added to the backlog.
Cloudberry chief executive Anders Lenborg said: “We are very pleased to see the first project materialising from the development agreement with Skovgaard to further reinforce the Danish partnership and increase development activities in Denmark. “The project will be an important contribution to our DK1 portfolio and will yield increased diversification to the Cloudberry portfolio as well as executing on our overall development strategy.” The parties have agreed Cloudberry will pay a fee of €1.6m to transfer the project into Odin. The total enterprise value for the project is €8m, where the remaining enterprise value of €4.8m and €1.6m is payable upon a potential final investment decision (FID) and commercial operating date (COD) respectively. All numbers are proportionate to Cloudberry. The closing of the transaction is estimated in fourth quarter 2023 and is subject to agreement of final transaction documents, satisfactory due diligence and board approvals.
Credits: renews.biz [Image: Rawfilm/Unplash]