Eurus Energy Acquires Wind Farms from YARD ENERGY & Maas Capital Renewables

Eurus Energy and YARD ENERGY clinched a long-term collaboration for the joint development of wind farm projects. The partnership kicks off with the acquisition by Eurus Energy of a majority stake in the portfolio of operational onshore wind farms in the Netherlands and Finland developed by YARD ENERGY.

Eurus Energy, a joint venture between Toyota Tsusho Corporation and Tokyo Electric Power Company, is Japan’s leading renewable energy company involved in the development of wind power projects throughout the world, including the United States, Uruguay, the United Kingdom, Italy, Spain, Norway, Japan, South Korea and Australia. YARD ENERGY is founded in the Netherlands and engaged in the development and management of wind power projects located in Northern Europe, including the Netherlands, Finland and Poland.

With the acquisition of the wind farm portfolio in the Netherlands and Finland, Eurus Energy expands its global operational renewable projects portfolio by 100 MW.

The Dutch portfolio consists of 9 existing wind farm projects at locations across the Netherlands aggregating to a total capacity of 72.5 MW. Windpark Netterden (12 MW) is the latest project developed by YARD ENERGY and is operational since the third quarter of 2016. The other 8 wind farm projects are operational since 2011-2013.

The Finnish wind farm portfolio consist of two projects (‘Kankaanpäänmäki’ and ‘Mustaisneva’) combining a total capacity of 27.5 MW. These projects are realized on a turnkey basis by a joint venture between YARD and Maas Capital Renewables. As part of this transaction, Maas Capital Renewables also sold its stake in these projects.

By acquiring YARD ENERGY’s wind farm projects, Eurus Energy sets foot in the Dutch and Finnish wind energy market for the first time. The newly established partnership between Eurus Energy and YARD ENERGY contributes to both companies’ ambition to expand and strengthen their business in Europe.

Baker & McKenzie’s Energy Mining & Infrastructure team acted as legal adviser for Eurus Energy in the transactions. The team is led by Weero Koster.

 

Interview with Weero Koster of Baker & McKenzie’s Energy Mining & Infrastructure team:

 

Please tell me about your involvement in the deal?

As you know, Eurus Energy and YARD ENERGY have forged a long-term collaboration for the joint development of wind farm projects in the Netherlands and abroad. This is more than a one-off. The partnership kicks off with the acquisition of a majority stake in a portfolio of operational onshore wind farms. It then seeks further opportunities. We were involved from day one: meeting the parties and paving the way to a successful partnership. It was a true one of a kind. Eurus Energy is a joint venture between Toyota Tsusho Corporation and Tokyo Electric Power Company; it’s Japan’s leading renewable energy company developing wind projects across the globe. YARD ENERGY was founded in the Netherlands and develops and manages wind power projects in Northern Europe. So: parties with very different backgrounds, but that share the same vision. We started with the memoranda of understanding and followed through with the due diligence, drafting and negotiation of the transaction documentation, and finally the restructuring of the group and completion.

 

Why is this a good deal for all involved?

By acquiring YARD ENERGY’s wind farm projects, Eurus Energy sets foot in the Dutch and Finnish wind energy market. It expands its global operational renewable projects portfolio by roughly 100 MW. Eurus gains insight into local markets and opportunities and on-the-ground execution prowess. The collaboration provides YARD ENERGY with an ambitious partner who knows how to make a deal and work it in the long run. The newly established partnership contributes to both companies’ ambition to expand and strengthen their business in Europe; each party brings its unique skill-set and gravitas to the table.

 

What challenges arose? How did you navigate them?

Every deal turns on its unique challenges and how you anticipate and resolve them. Here, there were two really. One was how to turn a diverse portfolio of modest sized projects into one tradeable asset, while serving the interests of many diverse stakeholders and investors. The other was matching the unchecked ambition of an eager development team with the experience and sheer execution power of a global giant. It all worked extremely well and the joint venture is set to embark on further sustainable projects.

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