A Nordic-centred deal worth €2.3bn to generate onshore wind power in Finland has been struck.
Danish firm Copenhagen Infrastructure Partners and Finnish company Myrsky Energia have signed a cooperation agreement to build 1,800 MW of wind power in the next decade, according to multiple reports from the region. The construction, it is understood, will take place in Finland where current wind power generation capacity stands at 5,700 MW.
“Wind power forms a huge opportunity for the whole of Finland,” said Tuomas Candelin-Palmqvist, COB of Myrsky Energia. “It can bring us the same kind of prosperity as our neighbour Norway has received from its own energy reserves over the past few decades.”
The level of wind power production in Finland has been rising at a rapid pace. Last year, wind-generated power on the market increased from 3,200 MW at the beginning of January to 5,200 MW by the end of the year. So far this year, it has gone up by yet another 500 MW.
Meanwhile, Swedish energy giant Northvolt has said it is going to invest in building a new ‘megafactory’ in Heide, Germany. Estimates put that investment at EUR 600m, although the final decision still depends on whether subsidies are granted, said Northvolt.
All this comes around two weeks after Swedish multinational power company Vattenfall issued a £250m (€288m) bond to fund green initiatives. Touting its ESG credentials, the firm has also recently signed a deal with automotive giant Volvo in which the latter will source half of its power supply from the company.
This is Vattenfall’s first hybrid bond issued since June 2021 and has a maturity of 60.25 years with the first reset date after 5.25 years. It has been reported that over £700m worth of orders were placed for the deal. The coupon is 6.875%. Under the Green Financing Framework of May 2022, the proceeds are designated for investments in the four qualifying categories of renewable energy, electricity transmission and distribution, energy efficiency, and clean mobility.