Co-sponsors EMERGY and Total Eren secure EUR 155m loan for wind power project in Ukraine
EMERGY AS, a utility-scale wind power developer based in Oslo, and Total Eren SA, a leading renewable power producer based in Paris, have signed definitive financing agreements with financial institutions led by European Bank for Reconstruction and Development (EBRD) for the first phase of a 250 MW onshore wind project located in the Kherson region of Ukraine.
The €155M deal was signed at a special meeting of Ukraine’s National Investment Council in Davos. The project’s start of construction is imminent.
The Syvash Wind Farm has been developed by EMERGY together with Total Eren. At its full capacity, Syvash represents a €380 million total investment. It will consist of 64 wind turbines and will be located on 1,300 hectares of land in the Kherson region of southern Ukraine. Once completed, it is expected to become the country’s largest renewable energy project.
Syvash is the first internationally financed large-scale wind farm in Ukraine. An A/B loan of up to €155 million has been raised for the construction of the initial 133 MW phase. It will consist of a €75 million EBRD loan, while B-Loans of up to €75 million will be provided jointly by the Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO). A parallel loan of €5 million will be provided by the Nordic Environment Finance Corporation (NEFCO).
The Syvash wind farm will be built to very high international standards, conforming to EBRD Performance Standards and Equator Principles. The electricity generated from Syvash will be sold to state-owned company Energorynok – Ukraine’s wholesale electricity market operator. Once the full project is constructed, it will have a planned production of 850 GWh per year, and will generate enough electricity to meet the needs of approximately 100,000 households in the municipality of Rivne, in Ukraine. It is expected to reduce CO2 emissions by 470,000 tonnes per year, hence creating a positive impact on the environment.
The Engineering, Procurement and Construction (EPC) contract has been signed with PowerChina, one of the largest power plant construction companies worldwide and Nordex Group, a leading producer of onshore wind turbines. Construction work is expected to start in a few weeks. The project will bring economic development and significant tax revenues to the Kherson region and will have a lasting economic impact even after its construction is completed.
Syvash represents Total Eren and EMERGY’s first project in Ukraine, a country with high potential for renewable energy sources, combined with strong local support from the Ukrainian Government, the Office of the National Investment Council, regional authorities and other partners to develop the Ukrainian renewable energy market.
This signature marks an important milestone for Total Eren in extending its development efforts to Eastern Europe with a project of this scale. We are proud to have mobilized, together with our partner EMERGY, this trusted lender group led by EBRD and look forward to starting construction and finalizing the second phase of the project. We see tremendous potential for further development for Total Eren in Ukraine.David Corchia, CEO of Total Eren
We are extremely happy that we can invest along with our strategic partner Total Eren in utility-scale wind farms that will power the sustainable future growth of Ukraine. The 250MW Syvash wind farm is just the start of our plans to invest a considerable amount of capital in our large pipeline of wind projects in Ukraine over the next two to three years. With improved business climate in Ukraine and success of this international project financing, we envision that private commercial institutions and international investors will see the benefits of investing in Ukraine. In addition, we foresee potential interest for Green Bonds to financing EMERGY’s pipeline of new wind projects in Ukraine. We look forward to working with the Government of Ukraine and our strategic partners to support our expansion plans for investing in wind power in Ukraine.Joar Viken, CEO of EMERGY