KfW IPEX-Bank is providing a loan of £56.5 million ($96.8 million) for the Crook Hill Wind Farm project, north of Rochdale in east Lancashire, UK. The bank is acting as sole mandated lead arranger.
The funding will support the purchase of 11 modern 3.4 MW type 104 wind turbines, delivered by the German manufacturer Senvion (formerly Repower Systems) from Hamburg. Senvion has also agreed a 20 year Operations & Maintenance (O&M) contract.
A 15 year Power Purchase Agreement (PPA) has been signed with Norwegian utility company Statkraft. The loan is understood to have a tenor of 15 years corresponding to the PPA. There is no ECA involvement.
The 37.4MW onshore wind farm in is sponsored by InfraRed Capital Partners, a leading global investment management company. This is the first contract for Senvion with InfraRed Capital Partners
Construction of Crook Hill is already underway. Project completion and handover is expected in first-half 2015.
James Hall-Smith, team head, environmental infrastructure of InfraRed comments: "We are delighted that KfW IPEX-Bank has provided a loan for the project at Crook Hill Wind Farm, which has the capacity to generate electricity for around 25,000 homes from July 2015“.
InfraRed appointed Partnerships for Renewables (PfR) as construction managers for the project. PfR has previously worked with Senvion and previously opened the Oakdale wind farm in Caerphilly, Wales.
InfraRed is an independent investment firm specialising in the infrastructure and real estate asset classes. It invests in projects seeking to add value through active management.
InfraRed manages in excess of $6bn of equity capital in specialist funds that invest into real estate and infrastructure assets which InfraRed develops and operates across the globe. Following the completion of a spin-out from HSBC in April 2011 the business is owned by its management team.
InfraRed has been actively participating in environmental infrastructure since 2006, expanding its long-standing presence in the mainstream infrastructure market. Crook Hill Wind Farm is one of the investments made by the Environmental Infrastructure team.
PfR is a renewable energy developer that primarily works in partnership with public bodies such as Forestry Commission Scotland and the Ministry of Justice. It was established in 2007 and now has a portfolio of onshore wind projects throughout the UK.
In early 2014, Hamburg-based REpower Systems SE, a wholly owned subsidiary of the Suzlon Group, the world’s fifth-largest manufacturer of wind turbines, changed its name to Senvion SE.
In our seminal export & project finance event in China, we will be bringing together leading experts and market newcomers alike to uncover the most promising opportunities in this region.