The largest wind farm south of the equator financed by EKF
Vestas is the Danish supplier behind Macarthur Wind Farm, which comprises 140 wind turbines with a total capacity of 420 megawatt, powering 220,000 households and eliminating 1.7 million tonnes of greenhouse gases a year. A long-term loan agreement from EKF helped to turn the wind farm into a reality. (Foto: Vestas Wind System)
Facts about Macarthur
What: Onshorevindmøllepark i Australien
Supplier: Vestas Wind Systems
Size: 420 MW divided between 140 wind turbines
Construction period: 2011-2013
How much: AUD 1 billion
EKF's product and share: A Buyer Credit Guarantee worth AUD 200 million and a Project Financing Guarantee worth AUD 175 million
Coverage: 2011 – 2030
King of the ocean
When hot air displaced from the equator towards the South Pole is combined with the earth´s rotation, powerful south-to-east air currents arise. These air currents were legendary during the Age of Sail, the era of the sailing ships. Whoever were able to catch the wind in the sails became king of the sea. This is why it has been decided to build the Macarthur onshore wind farm right here along the coast of Australia, 260 km east of Melbourne. The largest wind farm in the southern hemisphere.
Meridian Energy, the national New Zealand-based energy company and AGL Energy – one of Australia´s oldest energy companies, entered the agreement regarding Macarthur in 2010. The project worth a total of AUD 1 billion (DKK 5.3 billion) involved the establishment of 140 Vestas wind turbines generating a total of 420 megawatt.
As a financial partner, EKF got involved at an early stage of the project, when the negotiation of the loan agree-ment took place. Whereas the banks in Australia typically offer financing covering a five-year period at a time, the 420 megawatt wind farm needed a long-term financing agreement. EKF is able to provide financing for wind projects covering up to 18 years, which is exactly what EKF offered Macarthur. The repayment schedule ends in September 2030.
EKF is renowned for our ability to handle complex financing structures. In Macarthur´s case, EKF helped to finance a buyer credit worth AUD 200 million (approximately DKK 1.1 billion) for AGL and a Project Finance Guarantee worth AUD 175 million (DKK 927 million) for Meridian.
EKF´s flexibility and willingness to commit to a large share of the total financing played a significant part in the realisation of the project.
Since the construction of Macarthur in 2013, the ownership structure has changed as other owners have subsequently taken over the project.