Encavis and Commerzbank Secure Financing for Germany’s Second-Largest Solar Park
(IN BRIEF) Encavis Asset Management AG and Commerzbank AG have secured project financing for the Bartow solar project, set to be Germany’s second-largest solar park with a capacity of 260 MW. Located in Mecklenburg-Western Pomerania, the project is part of the Encavis Infrastructure Fund IV and aims to contribute significantly to Germany’s energy transition. The financing, amounting to around 145 million euros, is provided by Commerzbank, with equity from EIF IV. Construction began in March 2024, and completion is expected in late 2025. The generated green electricity will be sold to LyondellBasell through a 12-year Power Purchase Agreement.
(PRESS RELEASE) MUNICH/FRANKFURT, 31-Jul-2024 — /EuropaWire/ — Encavis Asset Management AG (Encavis AM) and Commerzbank AG (Commerzbank) have successfully finalized the project financing for the Bartow solar project, poised to become Germany’s second-largest solar facility with a projected total generation capacity of 260 MW. Situated in the municipality of Bartow, approximately 150 kilometers north of Berlin, in Mecklenburg-Western Pomerania, this solar park forms part of the Encavis Infrastructure Fund IV (EIF IV) portfolio, which remains open for subscription through BayernLB, targeting savings banks and cooperative banks.
The project, with a financing volume of about 145 million euros, is backed by Commerzbank, a leading financial service provider in Renewable Energy projects across Germany and Europe. The necessary equity is provided by EIF IV, with total capital allocated for the construction of the Bartow solar park. The initial phase of construction commenced in March 2024, with the entire project slated for completion in the latter half of 2025. Most of the generated green electricity will be sold to LyondellBasell (NYSE: LYB) under a 12-year Power Purchase Agreement (PPA).
Karsten Mieth, Spokesman of Encavis Asset Management AG, stated: “We are delighted to have initiated this major solar project in Germany in collaboration with Commerzbank. This successful financing highlights our dedication to sustainable energy projects and reflects the trust our partners place in our expertise. The Bartow solar park will significantly contribute to Germany’s energy transition and bolster our leadership in Renewable Energy.”
Commerzbank also expressed satisfaction with the project’s financing. Przemyslaw Damps, Director of Project Finance Origination at the Centre of Competence Green Infrastructure Finance (CoC GIF), remarked: “We were committed from the start to supporting this landmark project for our long-term client, Encavis Asset Management. The challenges in structuring the PPA and managing market prices, along with securing land for such a large-scale project, were effectively addressed through our collaboration. This partnership between Commerzbank and Encavis Asset Management emphasizes both companies’ dedication to sustainable and Renewable Energy. By financing the Bartow solar park, we are making a substantial contribution to Germany’s energy transition and advancing the shift to clean energy sources. We are confident in the successful implementation of this project and look forward to continued cooperation in the years ahead,” added Damps.
About Encavis Asset Management AG
Encavis Asset Management AG offers institutional investors customised portfolios and fund solutions for investments in the growing Renewable Energy market. The Company has been successfully investing in this sector since 2006, covering the entire value chain from asset sourcing to operational management of the facilities.
Encavis Asset Management AG is a wholly owned subsidiary of Encavis AG and benefits from the Group’s extensive experience and broad industry network. Encavis AG is one of the leading independent power producers (IPPs) in the Renewable Energy sector in Europe. The Company acquires and operates (onshore) wind farms and solar parks in Germany and other European countries. The total generation capacity of the Encavis Group currently exceeds 3.5 gigawatts (GW), with about 2.2 GW attributed to Encavis AG. This corresponds to a reduction of approximately 0.8 million tonnes of CO2 per year by Encavis AG alone. Additionally, around 1.3 GW of capacity is currently under construction within the Group, with approximately 930 MW in its own portfolio.
Stern Energy S.p.A., also part of the Encavis Group and headquartered in Parma, Italy, is a specialised provider of technical services for the construction, operation, maintenance, as well as the revamping and repowering of photovoltaic systems across Europe.
Encavis is a signatory of the UN Global Compact and the UN PRI network. The environmental, social, and governance (ESG) performances of Encavis AG are recognised by leading ESG research and rating agencies. MSCI ESG Ratings assesses their sustainability performance at an “AA” level. The internationally renowned ISS ESG awards Encavis a “Prime” status (A-), the Carbon Disclosure Project (CDP) gives Encavis AG a climate rating of “B,” and Sustainalytics rates them as “low risk” within its ESG risk rating.
For more information, visit www.encavis-am.com or follow @encavis on LinkedIn.
About Commerzbank AG
Commerzbank is the leading bank for the German Mittelstand. It is also a strong partner for around 25,500 corporate client groups as well as nearly 11 million private and business customers in Germany. In its two business segments – Private and Business Customers and Corporate Clients – the bank offers a comprehensive portfolio of financial services. Commerzbank handles about 30% of Germany’s foreign trade and is internationally active in the corporate client business in more than 40 countries. The bank focuses on the German Mittelstand, large companies, and institutional clients. In international business, Commerzbank supports clients with connections to Germany, Austria, or Switzerland, and companies from selected future-oriented industries. In the Private and Business Customers segment, the bank stands by its customers with the Commerzbank and comdirect brands: online and mobile, in the advisory center, and in person on-site. Its Polish subsidiary, mBank S.A., is an innovative digital bank serving approximately 5.7 million private and corporate customers primarily in Poland, as well as in the Czech Republic and Slovakia.
Media Contacts:
Encavis Asset Management AG
Tanja Van den Wouwer
Head of Sustainability & Communications
Phone +49 89 442 306 025
tanja.van_den_wouwer@encavis.com
Commerzbank AG
Beate Schlosser
Press Spokeswoman Sustainability
Phone +49 69 935-345720
beate.schlosser@commerzbank.com
Renate Christ
Press Spokeswoman Business Customers
Phone +49 69 935-34576
renate.christ@commerzbank.com
SOURCE: Encavis
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