Fortum and Mets

Fortum and Metsähallitus have agreed to sell their Kuolavaara-Keulakkopää and Joukhaisselkä pre-construction stage wind power projects in Lapland to the Impax New Energy Investors II Fund (“NEF ll”) managed by Impax Asset Management. Fortum’s share of the projects is 51% and Metsähallitus’s 49%.

The Kuolavaara-Keulakkopää project is located in the Kittilä and Sodankylä municipalities. A wind park consisting of a total of 17 wind power plants with an output of approximately 50 megawatts (MW) is planned for the area. The Joukhaisselkä wind park, located in the Sodankylä municipality, would comprise of 8-10 plants with an output of about 25 MW. Fortum and Metsähallitus have developed the projects jointly.

The sellers are responsible for acquiring any remaining permits. The transaction will be implemented in phases and the sale is expected to be completed during the first quarter of 2014. The transaction will have a minor impact on Fortum’s Power Division’s financial results and it will be booked over several quarters. The sale price and other terms are not disclosed.

Impax NEF II, closed in August 2011, has ?330 million of capital committed to the renewable energy sector. It has a growing portfolio of wind power projects including over 200MW in construction and operation in France, Germany and Poland, as well as solar photovoltaic investments in Italy. The European Investment Bank and The Finnish State Pension Fund are investors in the fund.

Risto Andsten, Vice President, Renewable Energy at Fortum commented: “The sale of the wind power projects is part of Fortum’s efficiency programme launched in October 2012. According to our strategy, we are focusing on hydropower, biofuels as well as solar and wave power development within renewable energy.”

Aimo Oikarinen, Director of Metsähallitus added: “Creating investment possibilities for wind power is a strategic focus for Metsähallitus. This sale is a testament to the success of our strategy. The transaction is also financially significant for us.”

Daniel von Preyss, Managing Director at Impax said: “We are delighted to sign our first acquisition in Finland with Fortum and Metsähallitus. Given the early stage of the Finnish wind market, we see this portfolio as an excellent foundation asset for our wind investment programme in the region. This is a key market for Impax and we target follow on acquisitions as the market continues to grow.”