Cloudberry Clean Energy ASA, a prominent Nordic renewable energy company, has announced that its majority-owned subsidiary, Odin Energy, is set to acquire a substantial 210-megawatt (MW) hybrid solar and wind project in Denmark from local partner Skovgaard Energy A/S.
Cloudberry had previously secured an 80% stake in the Odin portfolio from Skovgaard Energy in February. This latest agreement paves the way for an additional 168 MW of renewable power generation capacity to be integrated into Cloudberry's diverse energy assets. Within this expansion, solar power will contribute significantly, accounting for 140 MW, aligning with Cloudberry's Odin shareholding.
The Nees Hede hybrid project is situated in the town of Lemvig, on the western part of Jutland, within the DK 1 price area. This development venture, to be jointly executed by Skovgaard and Cloudberry, has already secured permissions for solar power generation. The parties are now focused on obtaining approvals for the incorporation of wind power production.
As part of the agreement, all project rights will be transferred to Odin, accompanied by a 30-year land lease agreement, with an option for a potential extension of an additional 30 years. In the event of a final investment decision (FID) for the project, the land for the wind power capacity will be acquired by Nees Hede at a predetermined price.
The overall enterprise value of this project is estimated at EUR 8 million (approximately USD 8.44 million).
Under the terms of this pivotal deal, which marks Cloudberry's maiden foray into hybrid project development, the company will pay an initial fee of EUR 1.6 million for the transfer of the project to Odin. The remaining portion of the enterprise value will be disbursed in two installments, comprising EUR 4.8 million and EUR 1.6 million, contingent upon the realization of a potential FID and the project's commercial operating date (COD), respectively.