Octopus Renewables Infrastructure Trust (ORIT) has increased its investment in Nordic Generation (Norgen), a developer focusing on wind and solar energy projects in Finland. The company has committed an additional €3.4 million (£2.9 million) to help advance Norgen’s ongoing projects and support the developer’s second-phase pipeline.
As part of this transaction, ORIT’s existing 50% stake in Nordic Renewables will convert into a direct 30% share in the integrated Norgen development business. This restructuring is expected to be beneficial for ORIT, with an anticipated value increase of between £1 million and £1.5 million. The new structure also opens up greater potential for upside over the asset’s lifecycle.
Phil Austin, Chair of ORIT, commented: “We are delighted to announce this follow-on commitment and restructuring of the Norgen investment. The Finnish developer has already made positive progress to date, with a number of projects expected to reach construction phase this year and next, having secured key permits. We believe the additional funding in this transaction will enhance generation capacity, providing much-needed clean energy. We also believe the updated ownership structure has the potential to deliver greater upside and opportunities for ORIT in future.”
As of December 31, 2024, ORIT’s holding in Nordic Renewables was valued at €4.8 million (£4 million), reflecting a £2 million increase over the quarter. With the new funding, ORIT’s total commitment to the venture rises to approximately €6.8 million (£5.6 million). This will expand the total expected ready-to-build capacity of Norgen’s projects to 845 MW, more than double the 400 MW originally projected.
In the transaction, ORIT is collaborating with another fund managed by Octopus Energy Generation, which also holds a 50% stake in Nordic Renewables. The fund will also take a 30% share in Norgen under the same terms as ORIT. The remaining 40% of Norgen is held by the management team.
The investment comes as Nordic Generation moves toward the construction phase for several key projects, having secured the necessary permits, with an aim to contribute significantly to Finland’s clean energy capacity.
