Vattenfall AB, the fifth largest electricity generator in Europe, today announced the acquisition of 100% of AMEC Wind Energy Limited (‘AMEC Wind’), a major UK developer of commercial wind farms for cash consideration of around 126.6 million GBP (equalling about 1.6 billion SEK or 160 million EUR). This move positions Vattenfall to further expand its presence in the UK market and to advance its efforts to make electricity clean by reducing emissions from electricity production and to increase electricity production from renewable energy.

Vattenfall and AMEC have also entered into a strategic alliance in the development of energy projects with increased efficiency and lower carbon emissions in addition to a framework agreement with the aim to develop the existing wind projects in the AMEC portfolio being acquired by Vattenfall and to develop new wind projects in the UK. Vattenfall is Europe’s fifth largest generator of electricity and the largest producer of heat and works in all parts of the electricity value chain. Vattenfall aims to produce approximately 50 TWh from wind power by 2030. This would provide renewable electricity to approximately 10 million households. The target is climate neutrality by 2050.

The UK is a key market for future growth. Vattenfall is aiming at playing an important role in new offshore wind power projects around the UK in the upcoming Round III. In the UK Vattenfall owns and operates the Kentish Flats offshore wind farm, which has a capacity of 90 MW, and has recently announced its firm intention to make an offer to acquire Eclipse Energy which is currently developing several wind projects in the UK with the potential of over 200 MW from renewable energy. It is also the world’s second largest offshore wind power operator, with a 60 per cent stake in Horns Rev, the world’s largest offshore wind facility off Denmark’s Jutland Peninsula and 100 per cent of the world’s third largest offshore wind farm, Lillgrund, between Sweden and Denmark. AMEC Wind owns one of the largest wind development portfolios in the UK with a potential of 573 MW.

Its onshore portfolio in the UK represents 6.5% of UK consented and in-development onshore projects, while its Scottish onshore portfolio represents 9.9% of Scottish consented and in planning onshore projects. Should all of the projects be realized, the net annual production of the portfolio would be approximately 2 TWh supplying electricity to approximately 400 000 households. Commenting on the acquisition, Lars G. Josefsson, Chief Executive Officer of the Vattenfall Group said: “This deal provides an excellent opportunity to expand our business in the UK by strengthening our local presence and leveraging our considerable experience in wind power”. “As part of our strategy to reduce emissions, Vattenfall has very ambitious plans for renewable energy.

The UK is a prime target market for future renewables growth, due to its well-functioning support systems, a deregulated and competitive market for electricity and openness to foreign investment. AMEC Wind is a sound company with long experience within this field and has developed important projects in line with our business and ambitions. Vattenfall sees the economics of the UK wind sector being attractive as the UK also benefits from high wind speeds, providing wind farms in the UK with higher load factors than wind farms in much of Continental Europe. “ Samir Brikho, AMEC Chief Executive said: “This is an excellent deal for both AMEC and Vattenfall. We are delighted to be working with Vattenfall as they build their position in the UK wind energy market. This is an area of national importance and together we look forward to making a significant contribution towards the UK’s targets for energy from renewable sources.” Vattenfall discloses this information pursuant to the Swedish Securities Market Act.