Novo Holdings, Sampension and European Energy are providing DKK 650 million in capital with the possibility of investments of up to DKK 1.5 billion through debt financing to purchase land for the construction of solar power plants and wind turbines in Denmark and Sweden through the newly established partnership, Renewable Energy Partnership I.
The partnership will purchase agricultural land that is suitable for renewable energy plants. In addition, the partnership will explore opportunities to combine food production and energy production and convert low-lying soils to green energy production. In addition to increased biodiversity, this can also lead to a double benefit for the climate if more CO2 is bound in the shallow soils, while green energy is established on the ground.
As part of the collaboration, European Energy will be responsible for the development of solar cell plants and wind farms on the acquired areas.
- If we are to achieve our green ambitions as early as 2030, it is important that the expansion of green energy production is accelerated, and this partnership is a big step in the right direction that, on market terms, contributes to accelerating development, says Knud Erik Andersen, CEO of European Energy, adding:
- We are very pleased with the collaboration with Novo Holdings and Sampension. They are two professional partners with in-depth knowledge and experience of investments in renewable energy and are both long-term investors, with an understanding and desire for investments to be made with consideration for local stakeholders and with strong local support.
Partners see good opportunities
The partners expect that the collaboration will contribute to Denmark coming one step closer to the ambitions in the Danish Climate Act to reduce greenhouse gas emissions by 70 percent as early as 2030. In addition, the conversion of agricultural land to green energy plants will strengthen the conditions for achieving cleaner groundwater.
- Investments outside the life science sector are an important element in the diversification of Novo Holding's investment portfolio. We expect the investment to deliver a good risk-adjusted return, as well as having the additional advantage of contributing positively to the green transition. We look forward to the collaboration with European Energy, and we expect to make more similar investments in the coming years, says Morten Beck Jørgensen, managing partner at Novo Capital Investors, Novo Holdings.
Sampension also sees good opportunities in the partnership:
- With the new collaboration, we are helping to lay the foundation for further development of solar power plants and wind farms in Denmark and Sweden, while ensuring our customers a good return on investment by renting out the acquired and developed land. We would like to contribute to an increased green transition on a responsible basis when we invest on behalf of pension customers, and look forward to the collaboration with both Novo Holdings and European Energy, which already operate our wind farms, says Henrik Olejasz Larsen, investment director at Sampension.
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