Holmen to Build Wind Farm in Sweden
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Holmen, Sweden, together with investment fund Eurofideme 2, France, has decided to build a wind farm in the municipality of Norrtälje, Sweden, via a jointly-owned company. The annual production is an estimated 165 GWh and the wind farm is planned to commence operation in the autumn of 2014.
Eurofideme 2, a renewable energy infrastructure fund of Mirova, Paris, France, has acquired half the shares in the company that Holmen founded to run wind power production on its own land in the municipality of Norrtälje near Hallsta Paper Mill. The decision now marks the start of installation of 17 wind turbines with an installed power capacity of a total 51 MW and an expected annual production of 165 GWh. An environmental permit has already been obtained.
"This project will exploit Holmen's excellent opportunities to produce wind power on its own land," says Holmen's President and CEO Magnus Hall. "It is also an important element in our focus on renewable energy, set to increase our self-sufficiency in electricity."
The cost of constructing the wind farm is an estimated SEK 650 million and will be financed by a bank loan to the jointly-owned company plus capital from shareholders Holmen and Eurofideme 2. Holmen's investment will largely be met by income from the sale of shares in the company, and the transaction will therefore not have any noticeable effect on Holmen's cash flow. The transaction will affect Holmen Energi's operating profit in the second quarter by approximately SEK 100 million.
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