Keppel Corporation Ltd and Keppel Infrastructure Fund Management Pte Ltd (KIFM) have jointly invested approximately €4.7 million (approximately USS$6.9 million) for a 16.3% stake in Fäbodliden II, a 17 MW Swedish onshore wind farm. The investment marks Keppel's latest move in expanding its involvement in the renewable energy sector and is in line with its Vision 2030 goal to grow its portfolio of renewable assets.
The remaining 83.7% of Fäbodliden II is owned by Kom-munal Landspensjonskasse (KLP), MEAG MUNICH ERGO Asset Management GmbH (MEAG) and Fred. Olsen Renewables AS (FORAS). The wind farm is part of an eligible pipeline of assets sponsored by FORAS, in which Keppel, KIFM, KLP and MEAG have the exclusive right and obligation to co-invest in 49% of all eligible pipeline assets in Sweden and the UK.
Fäbodliden II, which is expected to be completed in the second half of 2023, is currently at an advanced stage of development. Once completed, it will contribute to Keppel's recurring income.
Loh Chin Hua, CEO of Keppel Corporation, said, “This investment, made alongside KIT, reflects our asset-light strategy and will contribute to the group's recurring income when the wind farm is completed.”
Jopy Chiang, CEO of KIFM, added, “When completed, this asset will increase KIT's exposure to the green infrastructure segment and increase our exposure in the renewable energy sector to 740 MW in operating capacity, contributing to KIT's 25% renewables target by 2030 based on its equity-adjusted AUM.”
This joint investment is another step forward for Keppel in its renewable energy strategy, as it continues to grow its portfolio of renewable assets and expand its presence in the sector.
