Press release
European Energy Australia reaches financial close on 56MW solar farm
Mar 06, 2024
European Energy Australia announced today that it has secured project finance debt funding for the Mokoan Solar Farm. The debt is being provided by NORD/LB Singapore Branch in the form of a loan facility that is expected to comply with the Loan Market Association’s Green Loan Principles.
European Energy Australia reached Final Investment Decision on the project in November 2023.
European Energy’s in-house EPC team is currently steering Mokoan Solar Farm through the construction phase. Located in Winton, within the Hume region of Victoria, the solar farm has a capacity of 56MW and marks the company’s first venture into Australian solar construction.
The Mokoan Solar Farm received Development Approval from the Benalla Rural City Council in December 2018. Following this, an expansion of the project was approved by the Victorian Department of Environment, Land, Water, and Planning in June 2020. Spanning 94 hectares, the land for the project has primarily been utilized for grazing purposes.
“We are thrilled to reach our first financial close in Australia”, said Catriona McLeod, Country Manager for European Energy in Australia.
“We see this as the start of many projects by European Energy in the country. We are eager to leverage our capability across renewable energy development, EPC, financing and operations to contribute to meeting Australia’s renewable energy targets.”
“With our skilled in-house EPC team at the helm, we are confident in undertaking the construction of the Mokoan Solar Farm. Australia presents a highly promising market for renewable energy projects. Currently, we have over 5 GW under active development in Australia and a further 3 GW in screening, and we aim to realize these in the coming years”, said Thorvald Spanggaard, Executive Vice President of Project Development in European Energy.
Ross Bennett, Head of Structured Finance APAC, NORD/LB welcomed the transaction. “We are delighted to support our client European Energy on their first project in Australia, building on our long-lasting relationship in Europe and NORD/LB’s depth of experience in the Australian renewable energy market. We are a strong supporter of the global renewable energy transition and are very pleased to see another of our European clients now looking to expand into the APAC region. The Mokoan project marks our 26th renewable energy project in Australia and brings our total renewable energy capacity financed in country to 3.6GW.”
NORD/LB acted as MLAUB, Green Structuring Bank, LC provider, Hedge Provider and Agent for the project finance transaction.
Once fully operational, the Mokoan Solar Farm is expected to supply renewable electricity to more than 15,000 households. It will also contribute to a reduction in carbon emissions by over 85,000 tonnes. The farm will feature bifacial solar panels and is anticipated to complete construction in 2025.
Contact
Ming OU Lü
PR Manager
+45 3126 9376