European Energy collaborates with Novo Holdings and Sampension to raise funds for renewable energy projects
Danish renewable energy company European Energy has formed a partnership with Novo Holdings and Sampension to invest in green energy projects. The three firms will raise funds to purchase land for building solar and wind plants. Novo Holdings is an asset management company based in Hellerup, Denmark. The firm invests in financial assets and companies working on researching and developing projects in life sciences, and renewable energy is one of its interests.
“Investments outside the life sciences sector are an important element in the diversification of Novo Holdings’ investment portfolio,” said Novo Capital Investors managing partner Beck Jorgensen. Sampension is an insurance firm that manages pension schemes for white-collar employees in Denmark. The Copenhagen-based company will join forces with European Energy and Novo to purchase land in Denmark and Sweden to install clean energy projects.
The contract will have a starting capital of €87 million (DKr650 million). The trio expects to raise DKr 1.5 billion through debt financing to fund the two countries’ projects. After Nova and Sampension purchase suitable land for clean energy plants, European Energy will take the role of constructing new wind and solar projects. The partnership is going to bring a new dawn to energy production and food production. The initiative will examine opportunities for integrating energy production and food production to benefit the people of Denmark and Sweden. For instance, the lowland soils can be converted to energy production plants to aid in food production.
According to the Danish Climate Act, green energy in Denmark is slated to account for seventy percent of the electricity supply by 2030. The partnership will contribute to bringing this clean power ambition to life. “Partnerships with leading players such as European Energy are in line with our strategic focus on infrastructure. We expect the investment to deliver a good risk-adjusted return, just as it has the additional advantage that it contributes positively to the green transition,” added Jorgensen.
“We look forward to working with European Energy, and we expect to make more similar investments in the coming years,” noted Jorgensen. European Energy has been passionate about renewables, with one of the largest solar farms commissioned to be installed in Denmark this year. The country unveiled the 300-megawatt plant in October 2020.
“We are very pleased with the collaboration with Novo Holdings and Sampension. They are two highly professional partners with in-depth knowledge and experience of investments in renewable energy and are both long-term investors, with an understanding of and desire for the investments to be made considering local stakeholders and with strong local support,” said Knud Erik, CEO of European Energy.