Arise sells SGRE-powered Swedish wind project of 277 MW to Foresight

Swedish onshore wind farms developer Arise AB (STO:ARISE) is selling a 277-MW project at home to the flagship energy transition fund of Foresight Group LLP for about EUR 100 million (USD 100.6m).

Arise announced the deal for the sale of the Kölvallen onshore wind project to Foresight Energy Infrastructure Partners on Friday, while Siemens Gamesa Renewable Energy SA (BME:SGRE) confirmed its involvement as a wind turbine supplier on Monday.

The seller expects to receive EUR 75 million of the agreed consideration on closing of the transaction, while the balance will be paid upon commissioning of the plant, scheduled for the start of 2025. Arise itself will manage the construction process and will also handle the management of the fully-operational wind park.

Moreover, Arise will invest some EUR 17 million in the project to get back a 9% stake in it as the company seeks to become “a more dynamic developer.” The Swedish firm anticipates a positive impact on earnings of around EUR 90 million in the period 2022-2025 from the asset sale.

The Kölvallen wind farm is being built close to the Skaftasen facility – another wind project developed by Arise, powered by Siemens Gamesa turbines and acquired by Foresight. The newest partnership between the three companies will see Siemens Gamesa deliver 41 units of the SG 6.6-170 model and one SG 6.6-155 turbine. It will also service the machines for 35 years.

“This project feels like an extension to the Skaftåsen project, being physically close, and allowing us to work alongside our partners Arise and Foresight to extend our collaboration further,” commented Clark MacFarlane, CEO of Siemens Gamesa’s operations in Northern Europe and the Middle East.

It was also mentioned that NORD/LB has provided construction financing for the Kölvallen plant.

(EUR 1 = USD 1.006)

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