Renewable energy provider Cloudberry Clean Energi signs a sales and purchase agreement with Skovgaard Energy on ownership of wind project Odin Energy, the two parties reveal in a joint statement.

Cloudberry acquires 80% ownership of the subsidiary for a price of DKK 1.49bn (USD 213m).

The portfolio consists of 51 wind turbines with 47 turbines located in Denmark and additional 4 turbines in southern Sweden. The turbines are manufactured by Vestas and Siemens Gamesa and have an average expected remaining lifetime of roughly 23 years.

”The acquisition represents a gamechanger for Cloudberry and our long-term strategy. This puts us in a favorable position of becoming the leading Nordic Independent Power Producer, that can act locally and be a long-term responsible developer and owner of Danish wind and possibly solar assets,” reads a statement from Anders Lenborg, Chief Executive Officer of Cloudberry.

At the other end of the table, Skovgaard Energy plans to use the added funds to narrow its focus on PtX initiatives, says Skovgaard Energy Chair Jørgen Skovgaard.

”We are currently scaling our local development team to grow and assist Cloudberry with new and local opportunities, including wind/solar solutions and re-powering,” he adds.

As part of the agreement and included in the prices, Odin Energy will also purchase land rights associated with 44 of the turbines and certain rights to new wind and solar projects through a development agreement with Skovgaard.

The enterprise value of DKK 1.49bn will be reduced by cash flow generation between Jan. 1 and final closing by the so-called Tranche 2.

The transaction is divided into two tranches. Tranche 1 covers approx. 247GWh, and tranche 2 covers roughly 64GWh. For the entities included in Tranche 2, the existing co-owners have certain shareholder rights which may be triggered by the transaction. And as a result, the exact size of the portfolio could be subject to changes.

The transaction is contingent on an approval by Danish authorities with an estimated closing in the latter part of Q2’23.