In the north-eastern Brazilian state of Pernambuco, one of the poorest regions in the country, European Energy is about to build three new wind farms of 94 MW in total. It has become a reality after financing has been secured with a US$21 million loan from the part of Denmark’s Green Future Fund managed by IFU. It is the first loan granted by IFU under the new fund of a total of US$4 billion, established by the Danish government in 2019.
“The objective of Denmark’s Green Future Fund is for the country to contribute to the green transition globally and at the same time promote the sale of Danish climate technology. This project checks all the boxes, as it was developed in Denmark, financed primarily by Danish stakeholders, uses Danish technology from Vestas and contributes to reducing the global carbon footprint”, said Torben Huss, Chief Executive Officer of IFU.
European Energy in charge of implementation
European Energy is experienced within the establishment of wind and solar energy facilities, and the company is responsible for implementing this project, which consists of three individual farms, Ouro Branco I & II, and Quatro Ventos. The wind farms are expected to become operational by the end of 2022.
The project was developed by Brazilian developer, Eólica Tecnoligia, and Nordic Power Partners, a development company owned jointly by European Energy and the Danish Climate Investment Fund, which is managed by IFU and partly financed by Danish pension funds. The US$21 million loan represents close to 20% of the total construction cost. Vestas will supply 21 type V150-4.5 wind turbines and has entered into a 20-year service agreement.
Contribution to green local development
During construction as well as in the operational phase, the three new wind farms will create local jobs and economic development, and they will also improve electricity supplies and be a supplement to hydro power, which is challenged by long periods of drought. The wind farms are expected to produce close to 420 GWh/yr and reduce carbon emissions by more than 2.2 million t over the 20-year lifetime of the project.