Eolus Vind - Jointly acquires a ~260 MW wind power project

Eolus and Hydro REIN acquire a fully-permitted project Project total up to 260 MW, covered by a 12-year PPA Commissioning expected in H2’23 Acquires the Stor-Skälsjön project On Friday (25 June), Eolus Vind announced that it had acquired its second wind power project within one week. Eolus Vind and Hydro REIN have jointly acquired the fully-permitted Stor-Skälsjön wind power project from Enercon, of which Hydro REIN and Eolus Vind will own 49% and 51% of the project, respectively. The project totals up to 260 MW, and depending on the turbines they choose, the outcome is likely to be 250-260 MW. The project is located in the Sundsvall and Timrå municipalities in the Swedish SE2 electricity price area and will be covered by a 12-year PPA contract with Hydro.

The purchase price for the project rights was EUR 17m, and besides this, Enercon will be compensated for construction work already done. The project has a signed grid connection agreement and the connection is expected to be completed this summer. Further, the sales process will be initiated this summer, and later during the autumn, supplier contracts will be signed with commissioning expected to commence in H2’23.

It has not yet been decided how the revenue will be split between Eolus Vind and Hydro REIN. Project details: ~SEK 2. 5bn in sales and SEK 250m in EBIT We expect the project shares to be sold and the revenue recognition to begin in Q4’21, with the project handover in Q4’23 and the majority of the revenue recognition to occur between Q3 and Q4’23.

We assume that the project will end up at 250 MW, with revenues of SEK 10m per MW and a project EBIT margin of ~9%. Finally, we expect Eolus to receive 100% of the revenue recognition and project-related cost, after which 49% of the project’s net profit will be attributable to Hydro REIN’s shareholders. Innovative ways of adding projects to its portfolio This strengthens our view on Eolus’ ability to continuously find innovati.