NTR, a leading sustainable infrastructure investor and asset manager, has announced that it has successfully completed the combined financing of two projects – Murley wind farm and Ockendon solar farm – in partnership with Rabobank who have provided approximately £38 million of debt.
Bringing these two wind and solar projects together in an innovative two-stage financial structure enables NTR to finance fully merchant revenues for Murley wind farm by combining them with Ockendon solar project revenues which are backed by a power purchase agreement (PPA) with BT Group who will use 100% of the power generated by Ockendon over 10 years.
The solar farm at Ockendon is considered to be one of Europe’s largest solar farms constructed on a repurposed landfill site and is situated close to London, where there is significant demand for clean power. Construction on the 58.8 MWp site has already commenced. Murley wind farm is a 21.6 MW ready-to-build wind farm with six wind turbines located in County Tyrone, Northern Ireland. Construction of this project is expected to commence in the coming months.
Once fully operational, the sites will have a combined capacity of just over 80 MW, producing enough clean power to serve over 37 000 homes from 4Q23.
Through the partnership between NTR and Rabobank, the expertise of both businesses was drawn upon to deliver this innovative two-stage project financing.
Nick Forster, Head of Structured Finance for NTR, commented: “NTR and Rabobank are both dedicated to driving the European clean energy transition, and we are particularly pleased to have partnered with Rabobank on these two projects in such an innovative way. We collaborated well to develop a financing structure that enables a merchant project like Murley to be built to provide much needed clean power in Northern Ireland while preserving optimal sustainable returns for our investors.”
Marc Schmitz, Head of Project Finance Renewables Europe for Rabobank, stated: “Rabobank is pleased to have supported NTR in structuring and financing Murley and Ockendon. Both projects will directly contribute to the decarbonisation goals in the UK, making this transaction a perfect fit with Rabobank’s mission to be the bank of the energy transition. This transaction also represents a milestone in our collaboration and relationship with NTR, a leading developer in renewable energy projects.”
Cyril Pourrat, Chief Procurement Officer at BT Group, said: “As one of the largest private purchasers of electricity in the UK, today’s announcement not only underpins our commitment to use 100% renewable electricity worldwide where markets allow, it sends a clear signal to the market that renewable energy is a key enabler to reach net zero by 2050 in the UK.:
Pinsent Masons acted as legal advisors to NTR, and Natural Power acted as technical advisor. Rabobank was advised by DLA Piper.
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
The Summer 2022 issue of Energy Global hosts an array of technical articles focusing on wind, solar, biofuels, green hydrogen, geothermal, and more. This issue also features a regional report discussing the outlook for renewables in the US.
Read the article online at: https://www.energyglobal.com/electric-hybrid/21092022/ntr-completes-38-million-financing-deal-with-rabobank/
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