NBT AS (“NBT”), a utility-scale wind power developer based in Oslo, and Total Eren SA (“Total Eren”), a leading renewable energy Independent Power Producer (“IPP”) based in Paris, have signed definitive financing agreements for the first phase of a 250 MW wind project located in the Kherson region of Ukraine.

The €155M financing agreement was signed at a special meeting of Ukraine’s National Investment Council in Davos. The project’s start of construction is imminent.

The onshore wind project, called Syvash wind farm (“Syvash”) has been developed by Norway-based NBT together with France-based Total Eren. At its full capacity, Syvash represents a €380 million total investment. Syvash will consist of 64 wind turbines and will be located on 1,300 hectares of land in the southern Kherson region of Ukraine. Once completed, it is expected to become the country’s largest renewable energy project.

Syvash is the first internationally financed large-scale wind farm in Ukraine. An A/B loan of up to €155 million has been raised for the construction of the initial 133 MW phase. It will consist of a €75 million EBRD loan, while B-Loans of up to €75 million will be provided jointly by the Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO). A parallel loan of €5 million will be provided by the Nordic Environment Finance Corporation (NEFCO).

The Syvash wind farm will be built to very high international standards, conforming to EBRD Performance Standards and Equator Principles. The electricity generated from Syvash will be sold to state-owned company “Energorynok” - Ukraine’s wholesale electricity market operator. Once the full project is constructed, it will have a planned production of 850 GWh per year, and will generate enough electricity to meet the needs of approximately 100,000 households in the municipality of Rivne, in Ukraine. It is expected to reduce CO2 emissions by 470,000 tonnes per year, hence creating a positive impact on the environment.

The Engineering, Procurement and Construction (EPC) contract has been signed with PowerChina, one of the largest power plant construction companies worldwide and Nordex Group, a leading producer of onshore wind turbines. Construction work is expected to start in a few weeks. The project will bring economic development and significant tax revenues to the Kherson region and will have a lasting economics impact even after its construction is completed.

Syvash represents Total Eren and NBT’s first project in Ukraine, a country with high potential for renewable energy sources, combined with strong local support from the Ukrainian Government, the Office of the National Investment Council, regional authorities and other partners to develop the Ukrainian renewable energy market.