DNV helps Lundin Energy and Sval Energi acquire Finnish wind farm

DNV acts as adviser to Lundin Energy and Sval Energi for acquisition of third largest wind farm in Finland

Lundin Energy and Sval Energi (HitecVision) partner up to acquire their first wind farm. The support from DNV enabled Lundin Energy and Sval Energi to reach the investment decision and successfully acquire the Metsälamminkangas wind farm. Once in operation in 2022, the wind farm will be the third largest in Finland. DNV has provided technical advisory, energy production assessment, due diligence and assistance in contract negotiations.

About the customers
Lundin Energy was founded in 2001 and entered the Norwegian Continental Shelf in 2003. Since then, they have grown to become one of the largest operated acreage holders in Norway with a strong production growth profile for coming years. The company recently launched the Decarbonisation Strategy targeting carbon neutrality by 2030 and proposed name change from Lundin Petroleum to Lundin Energy. www.lundin-energy.com

Sval Energi was established in 2019 with the aim of building a Norwegian E&P company with significant infrastructure interests. Sval is fully owned by HitecVision, Norway’s largest private equity firm, with a total committed capital base of USD 6 billion. www.sval-energi.no

Challenge
On a quest for new energy sources Lundin Energy and Sval Energi wanted to acquire the Metsälamminkangas wind farm as part of their strategy to develop a low carbon energy future, but they were dependent on the outcome of a thorough due diligence by a third party to inform their investment decision.

Due to the tight timescales of the project it was vital for the team to quickly build a deep understanding of the details and assumptions, not just for the project, but also for the industry as it demonstrates that subsidy free wind farms can be profitable.

Third largest windfarm in Finland
The 132 MW Metsälamminkangas wind farm will be one of Finland's largest onshore wind farms. It will consist of 24 GE Renewable Energy 5.5-158 turbines (5.5 MW and 158 meter rotor diameter) with a 141 meter and 151 meter hub height. The expected yearly production is 400 GWh.

The wind farm uses a combination of gravity and rock anchor foundations and will start construction early 2020 in the municipality of Vaala, North Ostrobothnia, Finland. The planned commercial operation date is 2022. The Swedish company OX2, who is the developer in the project confirms that the wind farm will be the third-largest wind farm in Finland and is being constructed without any government subsidies.

Teamed up for an agile approach to due diligence
Acting as a technical advisor throughout the transaction phase, DNV offered Lundin and Sval Energi an agile approach with a flexible team of experts to ensure a quick and sound assessment of the risks and opportunities. The key risks and opportunities were brought to attention for the customer, and DNV actively participated in contract negotiations and proposed mitigation actions to improve the robustness of the project. DNV will continue as technical advisor for the investors during the construction of the wind farm, with planned completion in early 2022.

New chapter for Lundin and Sval
The support by DNV enabled Lundin and Sval Energi to reach the investment decision and successfully acquire the Metsälamminkangas wind farm on 16 March 2020. The acquisition marks the beginning of a new chapter for both companies.