Disused airfield to be converted into production of subsidy-free green energy
New solar PV park in Vandel will be the largest in the Nordics
13 December, 2019
Infranode I (Infranode), a Nordic infrastructure investment fund, and BeGreen, a Danish developer of large-scale solar PV parks, have just signed an agreement that will lead to the construction of the largest solar PV park in the Nordics – and the seventh largest in Europe.
The solar PV Park, Vandel 3, will use the land of the disused Vandel Air Base in the Municipality of Vejle. The park covers over 180 hectares, equivalent to 250 football fields. With an expected annual production of 152,000 MWh, Vandel 3 will cover the total consumption of approximately 34,000 households and reduce the CO2 footprint by 190,000 tonnes CO2e every year.
When Infranode made the investment, it was decided that BeGreen would retain a small stake in Vandel 3 and be responsible for the construction, operation and maintenance of the solar PV park.
The construction of the new solar PV park will begin in early 2020, and Vandel 3 will produce its first power in 2021.
Philip Ajina, co-founder and partner of Infranode, says:
“The investment in Vandel 3 is a very important milestone for Infranode as it enters the Danish infrastructure investment market. We look forward to doing so by investing in the largest solar PV park in the Nordics to date, which will be entirely free of public subsidies from day one. This investment is not only commercially attractive for our investors, including Nordic pension funds and the EIB, it also provides a significant contribution to the transition to a CO2-neutral and sustainable economy in the future.”
Anders Dolmer, co-founder and chairman of BeGreen A/S, adds:
“We would like to commend Infranode for its excellent team and their professionalism throughout the process. Infranode has the highest standards when it comes to infrastructure investments in the Nordics, and the company’s approach to investing long-term in sustainability makes for an ideal partnership between Infranode and BeGreen.”
Lars Møller Salling, CEO of BeGreen A/S, says: “This is the largest project we have developed at BeGreen, but it’s also one of the largest in Europe to date. We are looking forward to the collaboration and to setting new standards for the industry.”
Joel Löfroth, Investment Manager at Infranode AB, says: “This investment fits perfectly with our strategy of long-term, sustainable infrastructure investments. We look forward to making more investments in Denmark in the energy, transport, digital and social infrastructure sectors, and as a partner-focused investor with an interest in developing co-ownership in both the private and public sectors, I’m confident that many opportunities will open up in the future.”
The seller was advised by Deloitte (M&A, financial and tax), Kromann Reumert (legal) and Krug & Schram (technical).
The buyer was advised by EY (M&A, financial and tax), Plesner (legal), K2 Management (technical) and AFRY (commercial).
Infranode is a long-term infrastructure investor in the Nordics, specialising in energy, transport, telecommunications and social infrastructure. Infranode has funds under management totalling approximately EUR 750 million from well-known institutional investors, such as KPA Pension, Folksam, European Investment Bank and AP4, the Swedish state’s fourth pension fund. Infranode AB has local teams of investment professionals and offices in Helsinki, Stockholm and Oslo. Areim AB is the Alternative Investment Funds Manager for Infranode’s funds, and Infranode AB acts as adviser to Areim AB.
BeGreen develops, builds, maintains and operates large-scale solar PV parks and energy storage solutions, primarily in Denmark, Sweden and Poland. The business strategy is to build solar PV parks without any public subsidy in collaboration with local authorities, farmers, grid operators and investors – and to deliver sustainable electricity at stable, attractive prices to consumers and businesses.