Cloudberry comes to Denmark: New partnership increases power capacity by 70
Oslo, Norway, February 10, 2023:
Cloudberry Clean Energy ASA’s has today signed a partnership agreement with Skovgaard Energy A/S, a Danish energy developer.
The agreement secures the majority of a portfolio of 51 high-quality wind turbines in production, with 47 turbines in Denmark and an additional 4 turbines in southern Sweden.
Cloudberry acquires 80% ownership in the newly established company Odin Energy P/S (Skovgaard Energy A/S retains 20% ownership). This adds a total capacity of 106 MW (~311 GWh) to Cloudberry.
The existing wind turbines are high quality Vestas and Siemens turbines with an average life expectancy of 23 years.
The partnership between Skovgaard Energy A/S and Cloudberry will contribute to the transition to green energy in Europe and open up for more development and renewable energy projects in the Nordic region.
Cloudberry accelerates towards a production level of ~800 GWh per year as a result of the transaction and will expand its portfolio with assets in one of the most attractive price regions in the Nordics.
“We are proud to have established a scalable partnership with Jørgen Skovgaard and his team. Denmark in general and Skovgaard Energy in particular have industry-leading experience. In addition to the addition of the portfolio, immediate cash flow and further growth opportunities, the transaction represents a game changer for Cloudberry and our long-term strategy. This puts us in a favorable position to become a leading Nordic Independent Power Producer (“IPP”) that can act locally and be a long-term responsible developer and owner of Danish wind and potential solar assets, says Anders Lenborg, CEO of Cloudberry.
The move into the Danish market brings a strong position for Cloudberry in Northern Europe, and diversity in our portfolio to counterbalance the current headwinds brought about by the proposed tax changes in Norway.
“We at Skovgaard Energy are excited to start our journey with Cloudberry as a leading Nordic IPP. The transaction will enable Skovgaard Energy to accelerate our Power-to-X initiatives and put Jutland on the energy map for integrated energy solutions. We are scaling up our local development team and assisting Cloudberry with new and local opportunities including wind/solar and re-powering, says Jørgen Skovgaard, Chairman of the Board of Skovgaard Energy A/S.
The agreed enterprise value for 80% of Odin Energy is DKK 1,488 million. DKK. The final purchase price will be reduced by the cash flow generated between January 1, 2023 and the purchase date.
The acquisition of the portfolio is fully financed by existing liquidity and Cloudberry’s existing banking relationship with Nordic banks (approximately 50% equity and 50% debt). With the expected cash flow generated from the expanded portfolio and a low-leveraged balance sheet, Cloudberry has the capacity to fund further growth such as units in the development portfolio.
The transaction is subject to approval from Danish authorities with an estimated closing date of 30.06.2023. More details can be found in the attached power point presentation.
Focus on local development
“Partnering with Cloudberry Clean Energy, one of Europe’s leading energy companies, gives us the financial muscle to move our ambitious energy projects in Northwest Jutland even closer to our goal. In other words, the collaboration means that local development in Northwest Jutland with job creation and growth will be accelerated. I’m very happy about that.”
says Niels Erik Madsen, CEO of Skovgaard Energy.
“Partnerships are crucial for both speed and strong positioning in a competitive market where very large international players rightly see great potential. Therefore, the partnership with Cloudberry is extremely important for the further development of Skovgaard Energy based in Northwest Jutland.”
says Bjarke Mollerup Bitsch, Director of Business Development at Skovgaard Energy.
“Technologically, the entire energy industry is facing a lot of development to reach the set goals. Our large-scale PtX plans, building on experiences from the world’s first dynamic ammonia plant, for example, require partnerships, collaboration, capital and knowledge. We’re increasing this significantly with the strategic partnership with Cloudberry”
says Pat Han, Technical Director, Skovgaard Energy.
Skovgaard Energy is headquartered in Lemvig in West Jutland, where the development of the ambitious energy plans is now moving closer to realization.
The green climate and energy projects from Skovgaard Energy are characterized by the fact that they are based on local collaboration, develop local businesses and communities, create local jobs and increase biodiversity.
For more information, please visit our website at www.cloudberry.no or contact us:
Anders Lenborg, CEO, +47 93413130, al@cloudberry.no
Christian Helland, CVO, +47 418 80 000, ch@cloudberry.no
Skovgaard Energy A/S
Kristian Hansen, Head of Communications, +45 93394635, krh@skovgaardenergy.dk
About Cloudberry Clean Energy:
Cloudberry is a company that produces renewable energy in the Nordic region with respect for local traditions. The company owns, develops and operates hydropower plants and wind farms in Norway and Sweden. Cloudberry powers the green transition by offering new renewable energy today and for future generations. The company believes in a fundamental long-term demand for renewable energy in Europe. With this as a foundation, Cloudberry is building a sustainable, scalable, efficient and profitable platform to create shareholder value. Cloudberry’s shares are traded on the Oslo Stock Exchange’s main list (Oslo Børs), supported by strong owners and led by an experienced team and board. The company has offices in Oslo, Norway (Head Office), Karlstad, Gothenburg and Eskilstuna, Sweden. To learn more about Cloudberry, visit www.cloudberry.no