European Energy divests Swedish wind farm

European Energy Group has closed the sale of the Zinkgruvan Wind Farm to a German-based asset management company.

One of the major components of the sale was the fact that Zinkgruvan Wind Farm has entered a 10-year offtake agreement with a large international utility. The wind farm is located 70 km north of Linköping, Sweden, near the northern end of the Vättern Lake. The wind farm has a capacity of 53.2 MW and supplies approximately 40.000 Swedish households with fossil-free energy. Zinkgruvan was constructed and grid connect earlier this year.

Knud Erik Andersen, CEO of European Energy A/S, said:

 “We are very proud of the wind farm and we are delighted to hand over the keys to the long-term owner. We are pleased that we have managed to successfully sell our first project in Sweden and to be able to secure a multi-year agreement with a large offtaker. The Nordic countries are important to us and we hope to expand our pipeline here.”

 The wind farm consists of 14 GE Renewables turbines with a capacity of 3.8 MW, a rotor size of 137 meters and a hub height of 110 meters. Zinkgruvan is the second construction project in Sweden for European Energy, as it follows the smaller Västanby project (10 MW in total capacity) near Lund.

 The divestment and one-time income has contributed positively to the company’s earnings. Accordingly, for 2019, European Energy now expects profit before tax of EUR 35-37 million (previously EUR 30-35 million) and EBITDA of EUR 45-47 million (previously EUR 40-45 million).

 In 2020, we expect a higher EBITDA than this year. Due to the Groups acquisition of energy plants during 2019 the depreciation and financial costs will increase. Net results before tax in 2020 is expected to be in line with 2019.