Cloudberry will through the Odin portfolio acquire from Skovgaard Klimapark Nees Hede K/S consisting of the development and grid rights and the land access to the Nees Hede project. Nees Hede is a climate park with a favourable ESG footprint and local acceptance, situated on the western part of Jutland in the attractive DK 1 price area.

The project consists of 140 MW of solar capacity proportionate to Cloudberry of already environmentally permitted capacity. All projects’ rights will be transferred into Odin with a corresponding land lease agreement of 30 years with an additional option of another 30 years. Further, Skovgaard and Cloudberry will continue the development project with an aim to reach a permit for wind production in combination to the permitted solar. If a final investment decision (FID) is taken for the project, the land for the wind project will be acquired by Nees Hede at a pre-determined price. The complete Nees Hede project is estimated to be approximately 210 MW, with 168 MW proportionate to Cloudberry which will be added to the backlog. The Nees Hede climate park is to be developed as a hybrid project utilising the synergies between the wind and solar technologies to achieve beneficial project economics and risk advantages. This will be the first hybrid project developed by Cloudberry and the project will be an important contributor to the Cloudberry portfolio, both through the project returns and the transfer of hybrid project know-how.

“We are very pleased to see the first project materialising from the development agreement with Skovgaard to further reinforce the Danish partnership and increase development activities in Denmark. The project will be an important contribution to our DK1 portfolio and will yield increased diversification to the Cloudberry portfolio as well as executing on our overall development strategy”, said CEO Anders Lenborg. The parties have agreed that Cloudberry will pay a fee of €1.6 million to transfer the project into Odin. The total enterprise value for the project is €8 million, where the remaining enterprise value of €4.8 million and €1.6 million is payable upon a potential final investment decision (FID) and commercial operating date (COD) respectively. All numbers are proportionate to Cloudberry.

The closing of the Transaction is estimated in 4Q23 and is subject to agreement of final transaction documents, satisfactory due diligence and board approvals.