CapMan, Skarta Energy ink 500-MW renewables JV deal

Nordic private assets manager and investment firm CapMan and Finnish construction group SkartaNYAB Oyj have agreed to set up a joint venture with a plan to build over the next five years renewable energy plants with a total capacity of more than 500 MW.

As part of the deal, CapMan has agreed to take a majority 60% stake in solar developer Skarta Energy from its parent, SkartaNYAB, for EUR 22 million (USD 23.2m).

CapMan and SkartaNYAB will develop renewable energy projects with an initial focus on solar power in Finland and a long-term goal of turning Skarta Energy into an independent power producer whose business could be expanded into wind power and hydrogen solutions.

Founded in 2021, Skarta Energy has a 1-GW pipeline of mostly solar energy projects at different stages of development. The company's first utility-scale solar project in Utajarvi, northern Finland is currently under development with the construction of the first phase set to begin in late 2023.

The Nordic asset manager is making the investment through its CapMan Infra unit which is focused on energy, transportation and telecommunications infrastructure across the Nordics.

"Currently, solar energy accounts for only half a percent of all electricity produced in Finland, a figure which is expected to increase significantly as Finland is targeting to become fossil fuel free by 2035," Harri Halonen, partner at CapMan Infra, noted in a statement.

CapMan Infra has seven assets in its portfolio, among them the 241-MW Överturingen wind farm in Sweden.

(EUR 1 = USD 1.054)