Singapore's Keppel Corp will expand its wind energy portfolio by co-investing 480 million euros (US$481.34 million) alongside Keppel Infrastructure Trust (KIT), a Norwegian insurer and a German asset manager in Europe.
Conglomerate Keppel and KIT said on Wednesday (Jul 13) they jointly committed 160 million euros (US$160.50 million) for a combined 33.3 per cent stake in a fund, which will invest in a portfolio of existing and future onshore wind energy assets across Norway, Sweden and the UK.
The projects are owned by Fred. Olsen Renewables AS (FORAS), a Norwegian renewable energy developer controlled by Bonheur ASA.
The remaining 66 per cent stake in the fund will be split between Norway's Kommunal Landspensjonskasse (KLP) and Germany's MEAG MUNICH ERGO Asset Management (MEAG), each committing to invest 160 million euros.
The fund will make an initial investment of 176 million euros to buy 49 per cent interest in FORAS' three operating wind farms in Sweden and Norway.
It will also have a "five-year exclusive right and obligation" to co-invest in 49 per cent of all future onshore wind farms in the UK and Sweden that FORAS will take to a final investment decision stage, Keppel Corp said in a joint statement with KIT.
The investment expands Keppel's existing wind energy portfolio and KIT's maiden investment into renewable energy sector as both companies look to increase their sustainable energy portfolio by the end of the decade, the companies added.
KIT will fund about 131 million euros in FundCo, obtaining a 27.3 per cent stake in it, while the conglomerate Keppel will own about 6 per cent in the entity.