Keppel Corp expands wind energy portfolio with $161 million investment in Europe

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July 13 (Reuters) – Singaporean Keppel Corp will expand its wind energy portfolio by co-investing 480 million euros ($481.34 million) alongside Keppel Infrastructure Trust (KIT) (KEPL .SI), a Norwegian insurer and a German insurer managing assets in Europe.

The Keppel conglomerate and KIT announced on Wednesday that they have jointly committed 160 million euros for a combined 33.3% stake in a fund, which will invest in a portfolio of existing and future onshore wind assets in Norway, Sweden and the Kingdom. -United.

The projects belong to Fred. Olsen Renewables AS (FORAS), a Norwegian renewable energy developer controlled by Bonheur ASA (BONHR.OL). (https://bit.ly/3yyfYrv)

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The remaining 66% stake in the fund will be shared between Norway’s Kommunal Landspensjonskasse (KLP) and Germany‘s MEAG MUNICH ERGO Asset Management (MEAG), with each committing to invest €160 million.

The fund will make an initial investment of €176 million to acquire a 49% interest in FORAS’ three operating wind farms in Sweden and Norway.

It will also have an “exclusive five-year right and obligation” to co-invest in 49% of all future onshore wind farms in the UK and Sweden that FORAS takes to a final investment decision stage, said Keppel Corp in a joint statement. with KIT. (https://bit.ly/3PFkPOH)

The investment expands Keppel’s existing wind energy portfolio and KIT’s first investment in the renewable energy sector as the two companies seek to increase their sustainable energy portfolio by the end of the decade, added companies.

KIT will fund around €131 million in FundCo, securing a 27.3% stake, while the Keppel conglomerate will own around 6% of the entity.

($1 = 0.9972 euros)

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Reporting by Sameer Manekar in Bengaluru; Editing by Rashmi Aich

Our standards: The Thomson Reuters Trust Principles.

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