Fortum divests 80% ownership of 500 MW Nordic wind portfolio to CSEIP

Fortum and Credit Suisse Energy Infrastructure Partners (CSEIP) have signed an agreement whereby funds advised by CSEIP will acquire an 80% stake in Fortum’s Nordic wind portfolio.

Fortum will retain a 20% minority ownership in this wind power portfolio, continue to manage the construction, and serve as a long-term asset manager for the wind portfolio. The portfolio consists of the operational Nygårdsfjellet (32 MW, Norway), Ånstadblåheia (50 MW, Norway), and Solberg (76 MW, Sweden) wind parks as well as the Kalax (90 MW, Finland) wind park, which is under construction. The parties have also agreed that funds advised by CSEIP will invest in an 80% share of the Sørfjord (97 MW, Norway) wind park, once it is fully commissioned. The Sørfjord wind park is still under construction. Part of the capacities are already operational and the remaining part is expected to be commissioned by the end of the third quarter of 2020. In addition, Fortum and CSEIP have agreed on further cooperation and signed an exclusivity on a new project in Sävar, Sweden (154 MW) with the ambition to build it at a later stage. This would increase the jointly owned capacity to approximately 500 MW.

The total consideration of the divestment of the 80% stake on a debt and cash-free basis is expected to be approximately EUR250 million (US$277 million), of which EUR170 million (US$188.6 million) is related to the first quarter of 2020.

The transaction is subject to regulatory approvals in the EU and is expected to close in the first quarter of 2020.

Fortum will continue to develop other Nordic wind power projects that are still at earlier development phases.