The Norwegian wind developer Magnora ASA has, together with Kustvind AB, decided to accelerate growth plans and the development of the 500 MW Sydkustens Vind offshore wind project in southern Sweden.
The shallow water project has now entered its development phase, and physical studies of the seabed and project area in general will also commence.
Compared to the original schedule, the project has been accelerated by ten months.
“The decision follows several studies performed during the spring of 2020 which have provided the answers we were looking for. We are now more certain that this is a good project commercially and technically feasible,” said Haakon Alfstad, Investment Director in Magnora, Executive Chairman in Kustvind AB, and one of Norway’s most experienced wind project developers both onshore and offshore.
The Sydkustens Vind wind farm is located approximately eight kilometres offshore the southern coast of Sweden. The project is expected to have a production capacity of two TWh annually and could potentially serve 250,000 homes with electricity.
“The project is located close to relevant infrastructure in Sweden and the area has very attractive wind conditions. In addition, southern Sweden has had very attractive electricity prices both historically and recently. All these factors contribute towards increasing the project’s robustness,” Alfstad said.
Magnora signed a final shareholder agreement with Kustvind AB on 20 March 2020. Magnora will gradually increase its ownership in the company up to 50 percent based on a detailed milestone plan.
Kustvind AB consist of a team of three project developers with over 25 years’ experience from wind power developments in numerous countries, both onshore and offshore. In combination with Magnora’s wind development specialists, the project has a solid development platform.
“The offshore project is located centrally in the Øresund region which has 3.5 million inhabitants. The region has experienced strong population growth over the past decades and is expected to continue growing due to increased urbanization. Furthermore, the Copenhagen Municipality has together with leading Danish corporations decided to build the world’s largest green hydrogen facility. Both factors are positive for the region’s demand for green energy,” said Bjørn Sund, Magnora’s Director of Offshore and Industrial projects.