Greencoat Renewables enters framework deal with FuturEnergy Ireland

7th Sep 2023 14:57

(Sharecast News) - Greencoat Renewables announced a new strategic framework agreement with FuturEnergy Ireland on Thursday, to advance its 1GW+ pipeline of onshore wind projects in the nation.

The AIM-traded firm said FuturEnergy Ireland, a state-backed joint venture co-owned by ESB and Coillte, had a strong foothold in the renewable energy development landscape, being one of Ireland's leading wind project developers.

It said the strategic framework agreement was the first of its kind for Greencoat, opening doors to a sustained pipeline of onshore wind projects throughout Ireland.

As part of the agreement's unique structure, Greencoat said it had consented to acquire stakes in projects on a forward sale basis.

The acquisitions would be finalised on the individual projects attaining their commercial operation status, with all dealings contingent on obtaining pertinent shareholder approvals.

Benefiting from FuturEnergy Ireland's development pipeline and its proficiency in renewable energy project execution, Greencoat said it was looking at an investment exceeding €1bn in enterprise value for its stake in the framework's projects by the end of the decade.

The partnership aimed to expedite the rollout and streamline the execution of essential renewable energy projects across Ireland, aligning with the nation's green energy goals.

An additional feature of the collaboration was the targeted integration of a segment of the long-term contracted revenues through the Irish Government's Renewable Electricity Support Scheme (RESS).

Furthermore, the assets would tap into Ireland's robust corporate power purchase agreement market.

"We are very excited to partner with FuturEnergy Ireland and their development team on this long-term strategic framework agreement, which will make a significant contribution to Ireland's 2030 climate targets and broader net zero ambitions," said Paul O'Donnell of Greencoat Renewables.

"The framework will provide access to long-term contracted cash flows and forms an integral part of our strategy as we re-invest organic cash to secure attractive new investments.

"As the largest owner of onshore assets in Ireland, representing an investment of over €1.4bn over the last six years, we are well-positioned to deliver these critical projects."

At 1320 BST, shares in Greencoat Renewables were down 0.61% at 0.97p.

Reporting by Josh White for Sharecast.com.