OX2 to Sell 49% Stake in Three Finnish Offshore Wind Projects to Ingka
May 12, 2023
Sweden-based renewable energy firm OX2 has agreed with Ingka Investments to sell a 49 percent stake in its three offshore wind projects in Finland.
According to OX2, the three offshore wind projects will have the potential to reach a total installed capacity of about 6,000 MW.
The three projects are Halla, Laine, and Tyrsky located in the Gulf of Bothnia in the Finnish Exclusive Economic Zone.
With a combined potential capacity of approximately 6,000 MW, total production could amount to up to 29 TWh once operational, corresponding to more than one-third of the electricity consumed in Finland in 2022. Halla and Laine are among the most advanced offshore wind projects in Finland and have the potential to become operational by the end of this decade, OX2.
“We believe that large scale offshore wind production will be a powerful contributor to meet the growing energy demand in the region. I am very happy to reinforce our partnership and we look forward to continuing to drive the transition to renewable energy together with Ingka”, says Paul Stormoen, CEO of OX2.
“This cooperation is a further bold move in expanding our investment activities to address climate footprint reduction well beyond our own consumption and into our value chain. We are increasing our global investments and commitments in renewable energy from over EUR 3.5 bn today to EUR 6.5 bn before 2030,” says Peter van der Poel, Managing Director of Ingka Investments.
The buyer, Ingka Investments, is the investment arm of Ingka Group. Last year, Ingka Investments acquired 49 percent of three of OX2’s Swedish offshore projects and OX2 has previously sold nine onshore wind farms and one solar farm to Ingka Group.
"The transaction is in line with OX2’s strategy to diversify risk and capitalize on the value creation in offshore wind throughout the development phases," OX2 said.
Following the completion of the transaction, the development costs for the projects will be shared according to the respective party’s ownership. The transaction is subject to customary competition merger filing requirements and is expected to be completed within two months.
The transaction is expected to positively impact OX2’s operating income, with approximately 300 MSEK [currently around $29 million] in 2023.
The sale is expected to affect OX2’s net revenues and operating profit by 390 MSEK [currently around $37,7 million ] and 300 MSEK [currently around $29 million], respectively.
Following successful permitting, and if both parties at that point in time agree to continue development, OX2 will receive a pre-agreed price equivalent of 0.8 MSEK [currently around $77,459] per MW for the 49 percent of the planned capacity.