The Danish Climate Investment Fund (IFU) has sold its 6.25% shares in the Lake Turkana Wind Power project ending its decade-long co-ownership status.
- BlackRock, an American assets company, bought IFU’s stake in the project raising its shares to 31.25%.
- Vestas, a Danish manufacturer of wind turbines, also sold off its 12.5% shares to BlackRock two days ago.
- Other shareholders in the Lake Turkana Wind Power project who sold off their shares include the Finnish Industrial Co-operation Fund (Finnfund) and the Norwegian Investment Fund for Developing Countries (NORFUND).
BlackRock together with 22 investors dedicated $673 million in a Climate Fund Partnership (CFP) to acquire green energy projects in Africa. Some of the investors include the Japanese, German, and French governments.
BlackRock is now the second largest shareholder in the Marsabit energy producer which was connected to the national electricity grid in 2018. Anergi Turkana Investments from the UK still owns a majority of the stake with 43.2% after buying shares from NORFUND in July 2021.
Since March last year, BlackRock staked its interest in the wind farm after purchasing Finnfund’s shares in the second quarter of 2023. This is in line with the company’s intent to achieve 25% of asset investments in the continent.
The wind farm can offset more than 700,000 tonnes of Carbon dioxide emissions by cutting back fuel imports. Climate-driven investors are aggressively buying shares as the project’s initial investors look forward to selling these valuable assets.
“Lake Turkana Wind Power is a flagship project, and we are proud to have played an active role in bringing this pioneering project through construction and into operations, providing affordable and reliable green energy in Kenya.” said the Head of Green Energy & Infrastructure in IFU Reik Haahr Müller.
In August last year, Milele Energy Limited joined the shareholder race by acquiring a 25.25% stake in the clean energy infrastructure. Other minor shareholders include the Dutch company KP&P Africa and Sandpiper.
The project began in Loiyangalani in 2014. Vestas, an initial investor, provided 365 wind turbines to support the farm. According to the IFU, the project helped to create employment throughout its construction phase. About 200 Kilometers of road and 400 Kilometers of transmission line were required to actualize the project.
“Through the Winds of Change program, which was set up by Lake Turkana Wind Power, we have ensured that the communities will continue to benefit from the project,” said Reik Haahr Müller.
The Lake Turkana Wind Power farm is the largest of its kind in Africa making it a valuable asset for climate investors.
- It caters to 14% of Kenya’s electricity demand enabling the state-owned KPLC to distribute power to 1.2 million households countrywide.
- The two companies signed a 20-year Power Purchase Agreement (PPA) that would see the wind farm generate 310.25 MW of electricity.
- Wind energy follows Geothermal (40%) and Hydroelectric energy (23%) in the list of largest electricity generators.
