Blackfinch adds 12 new assets to its renewable energy portfolio
Blackfinch has recently acquired twelve operational Feed-in-Tariff-accredited onshore wind turbines from Harmony Energy, located across England and Scotland. Comprised of six Emergya Wind Turbines, four Northern Power Systems and two Wind Energy Solutions turbines, the total generation capacity acquired is 3.56 megawatts (MW).
Harmony Energy was founded by Peter Kavanagh and is backed by funding from the Universities Superannuation Scheme. Harmony Energy’s financial advisor, Rick Gambetta of Hexagon Finance and Advisory, assisted with the sale process and negotiations. Legal advice to Blackfinch was provided by TLT LLP and Blacks Solicitors LLP advised Harmony, with financial and tax advice provided by Johnston Carmichael LLP.
The operational wind projects are expected to generate approximately eight gigawatt hours (GWh) of electricity per year and include agreements to supply local farmers nearby with sustainable energy to power their facilities. The majority of the electricity generated is exported to the grid for sale through Power Purchase Agreements. 8 GWh of generation is roughly enough to supply 2,100 homes for a year, and avoids approximately 3,300 tonnes of CO2 production, relative to fossil fuel generation.
Blackfinch’s energy portfolio is now in excess of 40MW, with 14MW of capacity added in 2019. This growth is expected to continue, with Blackfinch’s energy team in discussions with a number of leading renewable energy developers.
As an investor in the renewable energy sector, Blackfinch expects to further expand its energy portfolio in 2020 in line with continued strong growth in its underlying investment funds. Its strategy remains to invest in operational and subsidised sites across the UK, in keeping with its core focus on capital preservation for investors.
Guy Lavarack, Investment Director at Blackfinch, said: “This acquisition was an attractive opportunity for our investors, and I’m thrilled that the collaboration between stakeholders allowed us to acquire these assets in a timely and efficient manner.”
Kay Hobbs, partner at UK law firm TLT said: “We are delighted to have advised on yet another acquisition for Blackfinch, and pleased that, along with the concentrated efforts of Blackfinch and Harmony Energy, mobilising our sector specialist and cross-jurisdictional expertise allowed for a swift completion.”
Peter Kavanagh, CEO of Harmony Energy, said: “The timing of the sale worked well for Harmony and will enable us to focus on developing other renewable projects, particularly large-scale solar and battery energy storage. Blackfinch has been a pleasure to work with and will make a great partner for all stakeholders.”