KEPPEL Corporation and Keppel Infrastructure Trust (KIT) will jointly commit 4.7 million euros (S$6.9 million) for a 16.3 per cent stake in a 17-megawatt (MW) Swedish onshore wind farm.

Keppel will take a 2.9 per cent stake, and KIT will take a 13.4 per cent stake in the wind farm, called Fäbodliden II, following the acquisition.

The rest of the stake will be owned by Kommunal Landspensjonskasse (KLP) and MEAG MUNICH ERGO Asset Management GmbH (MEAG) and Fred. Olsen Renewables AS (FORAS). 

The acquisition follows the entities’ joint announcement in July last year. At that time, Keppel and KIT jointly invested alongside KLP and MEAG, each for a 33.3 per cent stake in a joint investment vehicle. That was for a 49 per cent share of an initial portfolio of onshore wind-energy assets across Norway and Sweden, sponsored by FORAS. 

Under that deal, Keppel, KIT, KLP and MEAG landed the exclusive right and obligation to co-invest in 49 per cent of all of FORAS’ eligible pipeline of onshore wind-energy assets in Sweden and the United Kingdom, when the assets achieve final investment decision.

Fäbodliden II, located about 20 km north-east of Vindeln Municipality in Sweden, is part of this eligible pipeline of assets. The wind farm is currently at an advanced stage of development and is expected to be completed in the second half of this year.

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The latest move comes as Keppel is expanding its involvement in the renewable energy space, in line with its 2030 goal to grow the group’s portfolio of renewable assets, said its chief executive officer (CEO) Loh Chin Hua.

“This investment, made alongside KIT, reflects our asset-light strategy, and will contribute to the group’s recurring income when the wind farm is completed,” he said.

Jopy Chiang, the CEO of KIT’s manager, said the wind farm asset will raise the business trust’s exposure to the green infrastructure segment and to the renewable energy sector to 740 MW in operating capacity.

The transaction is not expected to have a material impact on the net tangible assets per share or earnings per share of Keppel and KIT for the current financial year, according to their bourse filings.

On Thursday, Keppel shares closed up 0.16 per cent at S$6.43; KIT units closed flat at S$0.48.