Aquila European Renewables PLC The Rock Update (1055H)
22 November 2022 - 1:57AM
UK Regulatory
TIDMAERS TIDMAERI
RNS Number : 1055H
Aquila European Renewables PLC
21 November 2022
21 November 2022
Aquila European Renewables plc
Update - The Rock Takeover Completed Under the Turbine Supply
Agreement
Aquila European Renewables plc ("AER" or "the Company"), the
London-listed investment company advised by Aquila Capital
Investmentgesellschaft mbH is pleased to announce that The Rock
("Project") has achieved takeover under the Turbine Supply
Agreement ("TSA"), an important milestone for the Project.
All turbines have passed the test run procedure and the
independent engineer has signed the taking over certificates for
all 72 turbines according to the TSA, enabling formal takeover to
occur. As a result, the Project has formally transitioned to
operations. On average, 95% of all the turbines are now in
operation, whilst the remaining turbines are subject to corrective
maintenance. The Project company will benefit from a
production-based availability warranty under the existing
Maintenance and Service Agreement, which will cover any losses if
availability is below 97% in the first year of operations and 98%
subsequently thereafter.
Final completion will be achieved upon the parties concluding
remaining items under the Engineering, Procurement, Construction
and Management Agreement in respect of which discussions are
ongoing.
The Rock is a 400 MW wind farm located in northern Norway, in
which AER acquired a 13.7% interest in June 2020. The Project
benefits from a pay-as-produced power purchase agreement ("PPA")
with Alcoa Norway ANS ("Alcoa"). Approximately 70% of the Project's
P50 production is hedged over 14 years via PPAs. The Rock is now
supplying electricity to Alcoa's Aluminium smelter in Mosjøen,
which is a key contributor to employment and growth in the area.
The Project milestone is another important development for the
Mosjøen community, following Alcoa's announcement in June 2022 of a
US$51 million investment to boost production capacity at the
smelter [1] .
The Rock is expected to have an operating life of 30 years and
is expected to provide 1,294 GWh of renewable electricity annually
over its lifetime, representing approximately 385 kt of CO(2)
equivalent avoidance per annum [2] .
Following completion of The Rock and Albeniz earlier in 2022,
the Company's investment allocation to construction projects has
been reduced to 2.5%, reflecting AER's initial payment to acquire a
100% interest in Project Greco, which is expected to reach
completion in 2023. Under the Company's investment restrictions,
AER can invest up to 30% of its Gross Asset Value in assets under
development and/or construction.
Ends
For further details contact:
Media Contacts
Edelman Smithfield
Ged Brumby 07540 412301
Kanayo Agwunobi 07581 010560
Sponsor, Broker and Placing Agent
Numis Securities 020 7260 1000
Tod Davis
David Benda
Vicki Paine
NOTES
The objective of Aquila European Renewables plc is to provide
investors with an attractive long-term, income-based return in EUR
through a diversified portfolio of wind, solar PV and hydropower
investments across continental Europe and Ireland. Through the
diversification of generation technologies, the seasonal production
patterns of these asset types complement each other to balance the
cash flow, while the geographic diversification serves to reduce
exposure to one single energy market. In addition, a balance is
maintained between government supported revenues, fixed price power
purchase agreements and market power price risk.
www.aquila-european-renewables.com
LEI Number: 213800UKH1TZIC9ZRP41
[1]
https://news.alcoa.com/press-releases/press-release-details/2022/Alcoa-Announces-Investment-to-Boost-Production-at-Mosjen-Smelter-in-Norway/default.aspx
[2] Based on 100% interest in the Project. CO(2) eq avoidance,
is an approximation and does not necessarily reflect the exact
impact of the renewable energy project. The cited sources of
information are believed to be reliable and accurate, however, the
completeness, accuracy, validity and timeliness of the information
provided cannot be guaranteed and Aquila Capital accepts no
liability for any damages that may arise directly or indirectly
from the use of this information.
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