Foresight and ArcelorMittal enter into a 10-year power purchase agreement (PPA) for two Spanish subsidy-free solar farms
- PPA secured against power generated by 5MW Escalonilla Norte and 5MW Escalonilla Sur in Toledo;
- The first corporate 10-year fixed rate PPA in Spain; and
- Foresight has a 116MW portfolio of subsidy-free solar in Iberia
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Foresight Group LLP (“Foresight”) is pleased to announce it has agreed a 10-year corporate Power Purchase Agreement (“PPA”) with ArcelorMittal Energy SCA (“ArcelorMittal”), a subsidiary of ArcelorMittal SA.
The deal is the first corporate 10-year fixed price PPA to be agreed in Spain and is evidence of Foresight’s capacity to deliver secured long-term revenues to our investors in an unsubsidised context.
The two projects, which are grid connected, are expected to become operational in the second quarter of 2019 and are each expected to generate around 8.6GWh every year.
Carlos Rey, Director at Foresight, commented: “We are delighted to have agreed terms for Spain’s first corporate fixed rate 10-year PPA with ArcelorMittal. Iberian Grid-parity forms a key part of our long-term strategy as we are looking to consolidate further our leadership as a worldwide solar operator.” He added “the execution of our third 10-year PPA in the region is further proof of a robust future for the Iberian unsubsidised market”
Edouard Oberthür, Head of Long Term Contracts Natural Gas, Power and Power Plant projects at ArcelorMittal, commented: “As a large consumer of electricity in Europe, ArcelorMittal is very proud to sign these PPAs in order to supply our Spanish steel mills with a competitive and CO2 free electricity supply”.
Foresight was advised by Watson, Farley & Williams (“WFW”) Legal, and Our New Energy (“ONE”) in the structuring, origination and negotiation.
In October 2018, Foresight opened a new office in Madrid, further strengthening its presence in Southern Europe for subsidy free solar acquisitions.
For more information contact:
Ben Thompson, Foresight Group: email@example.com / +44 (0)20 3667 8155
Notes to Editors
About Foresight Group LLP (“Foresight”)
Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 30 years.
Foresight has £2.9 billion of Assets Under Management across a number of institutional and UK retail funds.
Foresight is a leading renewables infrastructure investor with over £2 billion of energy infrastructure assets under management. Foresight currently manages more than 140 renewable generation assets globally, with a total generating capacity of 1.6GW.
In Solar, Foresight has invested in over 100 solar plants and has more than 1.1GW of solar generation assets under management around the world.
In Wind, Foresight has more than 165MW of wind generation assets across the UK and Germany.
In Bioenergy, Foresight manages 32 waste projects with 115MW baseload generating capacity, processing over 1.8 million tonnes of waste per annum, having mobilised some £1bn of capital investment. The projects when fully operational will divert some 800,000 tonnes of waste from landfill every year, saving more than c.600,000 tonnes of CO2 emission every year.
In addition, Foresight manages 160MW of Reserve Power assets and two utility scale Battery Storage projects providing 45MW of Enhanced Frequency Response (“EFR”) services to National Grid.
Foresight is headquartered in London with regional offices in Manchester, Nottingham, Milton Keynes, Leicester and Guernsey and international offices in Sydney, Rome, Madrid and Seoul.
About Arcelor Mittal
ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, it is the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.
Through core values of sustainability, quality and leadership, ArcelorMittal operates responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which it operates.
For ArcelorMittal, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. ArcelorMittal is actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.
ArcelorMittal is one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically diversified portfolio of iron ore and coal assets, it is strategically positioned to serve its network of steel plants and the external global market. While its steel operations are important customers, its supply to the external market is increasing as it grows.
In 2017, ArcelorMittal had revenues of $68.7 billion and crude steel production of 93.1 million metric tonnes, while own iron ore production reached 57.4 million metric tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/
Contact information ArcelorMittal Investor Relations
+44 20 7543 1156
+1 312 899 3985
+44 20 7543 1156
+44 207543 1156
+33 171 921 026
Contact information ArcelorMittal Corporate Communications
ArcelorMittal Corporate Communications
+44 20 3214 2419