In a strategic move to bolster its renewable energy portfolio, Lynher Energy has sealed a corporate Power Purchase Agreement (PPA) for the offtake from Napier Park and parent company Ethical Power's 27MW Twitch Hill solar farm in Shropshire, England.
The agreement, structured as a sleeved physical PPA, ensures a reliable source of solar power to the off-taker over the next 15 years. Lynher Energy will dedicate 100% of the output from the new array under the terms of the deal.
Construction is already underway for Twitch Hill, slated to go online in September 2024. Spanning across 36 hectares of unutilized grade 3b land in Shropshire, the solar farm's design includes habitat creation, rewilding efforts, and provisions for sheep grazing.
Once operational, Twitch Hill is projected to reduce carbon dioxide emissions from power generation by 8150 tonnes annually, making a substantial environmental impact.
Chris Sparrow, Director of Lynher Energy, hailed the PPA as a significant milestone in the company's renewable energy journey. He stated, “This CPPA represents another step in the realization of our ambition in the renewable energy field. The agreement provides a solid foundation for Lynher Energy to continue to grow our capacity in the near future.”
Sparrow emphasized the partnership's alignment with Lynher Energy's commitment to combating climate change while delivering value to stakeholders. He added, “Working with a creditworthy FTSE100 company reaffirms our ability to make meaningful contributions to the fight against climate change while providing value for our stakeholders.”
The agreement also aims to ensure a high level of cash flow certainty for Lynher Energy's investment in Twitch Hill for years to come.
Ethical Power, renowned solar energy experts, have secured the contract for engineering, procurement, construction, as well as operation and maintenance for the Twitch Hill array, further solidifying the project's expertise and reliability.
Legal advisory for Lynher was provided by Osborne Clarke, while the off-taker received counsel from Amber and EY, underscoring the collaborative effort and expertise involved in finalizing the PPA agreement.
