Metsähallitus, a Finnish state-owned enterprise and Vattenfall, a leading European energy company, have reached an agreement for the further development, construction and operation of Finland’s first large-scale offshore wind project.
The wind farm - with a planned capacity of 1.3 GW and a potential annual production of 5 TWh - will be located in Korsnäs, on the west coast of the country, in Finnish territorial waters. It is expected to be operational by 2030s. This is a landmark deal for both Finland and Vattenfall, and an important milestone towards Finland's climate goals as well as electricity supply. Offshore Wind is a much needed energy source due to its more stable, baseload generation profile compared to e.g. onshore wind and solar PV. This is the first completed auction process in the Finnish offshore wind market, and Metsähallitus has announced further auctions for additional areas in Finnish waters in 2023/24.
Overview of the Korsnäs offshore wind project:
- The first of several offshore wind projects to be developed and auctioned by Metsähallitus
- Estimated investment value of EUR 2 – 3 billion when operational in 2030s
- Generation potential up to 5 TWh, corresponding the annual consumption of more than two million apartment homes
- Nominal capacity of approx. 1.3 GW, corresponding to c. 40% of the wind power capacity in Finland in 2021
EY Corporate Finance acted as the exclusive financial advisor for Metsähallitus in the transaction and ran a highly competitive international auction process. In addition, EY provided tax advice and ESG due diligence services. The transaction highlights EY’s capabilities in providing first class, sector specialized corporate finance and other transaction advisory services in highly competitive cross-border transaction, and EY’s leading position in advising on first-of-a-kind transactions in the energy sector to accelerate the energy transition.
Please find a link to the Metsähallitus press release here.