Keppel forms wind, solar JV with MET Group

• Collaboration to pursue renewable resource opportunities in Western Europe

Keppel Infrastructure Holdings (KI) has actually formed a JV company, Keppel MET Renewables, with Swiss-based incorporated European energy company MET Holding (MET Group), to pursue renewable resource opportunities in Western Europe.

The JV between KI and MET Group works as the following phase of their strategic partnership considering that KI spent 20% in MET Group in 2020.

The new JV, Keppel MET Renewables, will pursue as well as purchase both greenfield and brownfield solar as well as onshore wind assets throughout Western Europe, which will certainly match MET Group's companies throughout Europe.

The JV has a target to scale up rapidly to a minimum of 1GW of operating as well as ready-to-build renewable energy projects.

As part of the strategic deal, KI unloaded a 10% risk, out of the 20% it had, of MET Group to Benjamin Lakatos, the owner as well as president of MET Group, and also reinvested the proceeds, including gains, from the divestments right into the JV.

KI will spend roughly EUR30m as start-up equity right into Keppel MET Renewables.

Ultimately, KI and MET Group will each hold 49.9% in Keppel MET Renewables, with the continuing to be 0.2% to be held by Lakatos.

Keppel MET Renewables will be seeded with an initial portfolio of 213MW of early-stage solar projects in Italy from MET Group.

These assets are anticipated to attain commercial operations, in phases, in between end-2024 and also mid-2025.

Both Keppel Infrastructure and also MET Group will take advantage of Keppel MET Renewables to accelerate the growth and transformation of their power generation portfolio in the direction of even more renewables as well as low carbon energy infrastructure assets.

This further underscores the commitment in the direction of accomplishing Keppel's Vision 2030 goals and MET's 2GW renewables target.

Upon the completion of this financial investment, the Keppel Group will have about 2.6 GW of renewable energy assets on a gross basis, including assets under growth.

Cindy Lim, chief executive of KI, stated: "Solar and wind energy will certainly be cornerstones for the EU to promote the uptake of renewables-based electrification in transportation, heating and cooling, and also promote the achievement of its power transition ambitions.

" The European Green Deal as well as the REpowerEU strategy generate vast opportunities for renewable energy projects and also field coupling throughout the EU economic situation which aim to set an extra resilient and also sustainable energy system.

" Keppel Infrastructure is pleased to leverage our existing strategic partnership with MET Group to expand our geographical visibility in Europe as well as accelerate the development of our renewable resource portfolio.

" The initial portfolio of Italian solar assets offers an appealing platform for us to develop a beachhead in the growing renewables field in Western Europe.

" Keppel MET Renewables will certainly remain to pursue such opportunities in various other Western European countries, such as France, Germany, Portugal as well as Spain, and take our company to the next level."

Lakatos added: "I am delighted that we are stepping up to the next level of strategic collaboration with Keppel.

" The renewables joint endeavor we have established is the ideal platform for our cooperation as well as fits completely within the lasting vision of both companies.

" MET and Keppel are committed to support the power transition in Europe."

After these deals, MET Group stays a bulk management-owned business running under joint control, and also Keppel Infrastructure will keep its depiction on the board of directors of MET Group.

The above purchase is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel Corporation, the parent company of Keppel Infrastructure, for the present fiscal year.