(AOF) – Neoen, one of the main independent producers of exclusively renewable energy, announces that it has signed a virtual power purchase agreement (Virtual PPA) at the end of December 2022 with Coveris, one of the European leaders in the packaging sector. This is the second Corporate PPA signed by Neoen in Sweden. Under the terms of this contract, Coveris will purchase the equivalent of more than 60% of the green electricity (with its guarantees of origin) produced and injected into the Swedish grid by the future Storbrännkullen wind farm, whose total capacity will be of 57.4MW.
This 10-year contract is partially indexed to market prices. The rest of the energy and guarantees of origin will be sold by Neoen on the Nordic electricity market.
The Storbrännkullen wind farm is located in the counties of Jämtland and Västernorrland, in the municipalities of Ragunda, Strömsud and Sollefteå, about a hundred kilometers from the city of Östersund. Its construction began in July 2022 and it should be commissioned at the end of 2023.
With the signing of this second PPA, a few weeks after that of the largest solar PPA (90 MWp) concluded in Sweden for the Hultsfred photovoltaic park, Neoen demonstrates its ability to carry out large-scale solar and wind projects.
Neoen thus affirms its ambition to become a benchmark player in Sweden and to actively participate in achieving the national objective of 100% carbon-free energy by 2040. Present in Sweden since 2020, the local Neoen team quickly expanded. It is developing a portfolio of several hundred MW of wind and solar power across the country, as well as storage projects.
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Key points
– First French independent producer of exclusively renewable energies founded in 2008;
– Turnover of €333.4 million, generated in 15 countries, including 50% in Australia, and 49% from solar, 41% from wind and 10% from storage;
– Portfolio of 13.9 GW, including 5.4 GW of assets in operation or construction;
– “Development to own” business model: integrated with a presence in the 4 phases of the life of the assets – development, financing, project management and operations: operating in countries with network parity, with contracts for the sale of long-term PPA electricity,
– Capital held at 46.51% by Impala (holding of the Veyrat family) and 1.61% by Cartusia (holding of the Barbaro family), acting in concert, ahead of the FSP (6.5%) and the BPI (4 .7%), Xavier Barbaro being Chairman and Chief Executive Officer of the 8-member Board of Directors;
– Balance sheet still tight with debt leverage, increased by new projects, standing at 7.5 but cash of €559 million.
Challenges
– 2021-2025 roadmap with objectives set twice in 2022: capacity in operation or construction of + 10 GW including 5 GW in 2023, annual investments of around €5.3 billion, hence regular fundraising funds, increase in operating income of +20% in 2022 then double digits;
– Innovation strategy: carried out in partnership with customers during pilot projects, innovative in essence, identifying cost reduction and energy storage technologies;
– “Sustainable Framework” environmental strategy: Corporate pillar for reducing the carbon footprint, Projects pillar for managing environmental issues and recycling facilities, launch of green loans;
– Strong position in the storage of lithium-ion batteries, developed in partnership with Tesla in the Australian unit of Hornsdale, in Providence in El Salvador and in Illikkâlâ in Finland;
– Rise in capacity in operation to 3,584 MW at the end of June, in solar and wind power in France.
Challenges
– Activity driven by regulations favorable to renewable energies;
– Capital gains expected from “farm-out” or partial or even total disposals of secured assets;
– Execution of solar projects, of 92.5 MW won in France and 80 MW in Ireland, and wind construction in Sweden and Finland;
– After a 36% increase in turnover and a 69% decline in net profit in the 1
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semester, 2022 target increased by an operating profit of between 380 and 460 million, i.e. a margin of 80 to 90%.