Danish renewables developer locks in finance for two new Australian solar farms

Denmark’s European Energy has secured a €70 million ($A130 million) financing package for two solar projects located in Victoria and New South Wales.

The financing announced this week is being provided by Australia’s Westpac and the Singapore branch of Germany’s DZ Bank, and will be used to support its 106 MW Lancaster solar project in Victoria that’s already under construction.

Funding will also be put towards European Energy’s smaller 31 MW Mulwala solar project in NSW, which the company expects to break ground on sometime in the third quarter of this year.

Both Lancaster and Mulawla solar projects are scheduled for completion sometime during 2026.

“Australia is a key market for European Energy, and we are pleased to strengthen our development activities with the support of established financial partners,” said Catriona McLeod, country manager for Australia for European Energy.

European Energy acquired the two projects during the second half of 2024 as part of a two-project portfolio from Swedish developer OX2. Initial development was carried out by Shell, who sold the two projects as part of a wider portfolio sale during 2023.

“As we continue to grow our international portfolio, transactions like this demonstrate our ability to execute bankable, investment-grade renewable energy projects across Australia,” said Jens Peter Zink, Deputy CEO of European Energy.

First established in Copenhagen in 2004*, European Energy has built its global clean energy pipeline to a claimed 60GW in size, with around 9GW of this being in Australia.

The company says its interest in the Australian market has been driven by “high solar resources, established grid infrastructure, and growing policy support for renewable energy investment.”

*This article has been corrected to say that European Energy was first established in 2004. A previous version of the article mistakenly said the company was first established in 2013. European Energy established its Australian presence in 2013.

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