Wind farms developer and operator NBT has signed two engineering, procurement, construction (EPC) contracts with China Electric Power Equipment and Technology (CET) to build two windfarms that will have a combined capacity of 750MW.
The two companies will build Zophia II (300MW) and Zophia III (450MW) windfarms in Zaporizhia, Ukraine. The wind farms will be built with an investment of more than €1bn.
NBT CEO Joar Viken said: “We are excited to sign the EPC contracts with CET for the largest onshore wind project in Europe. We are very happy to work with CET and State Grid Corporation of China to build a huge windfarm in Ukraine that will benefit the people of Ukraine and the environment.”
Industrial Commercial Bank of China (ICBC), the Export-Import Bank of China (Exim Bank of China) and China Construction Bank (CCB) have also signed financing arrangement agreement with NBT and CET to fund the two facilities.
The financial institutions have agreed to offer €500m of senior debt, and NBT plans to engage other international banks for generating another €250m of project financing. The two companies have also signed a strategic cooperation agreement to co-operate with each other on future renewable energy projects across the globe.
CET chairman Jia Zhichiang said: “We are very eager to work with NBT to build the 750MW Zophia windfarms. Since Ukraine is in the Belt and Road Initiative, we are delighted that we can enter Ukraine with this large construction project.
“With our strengths in international EPC projects, project management, technology, building world-class transmission lines including ultra-high voltage transmission lines, we will bring unparalleled excellence to complete the Zophia wind farms.”
Upon completion of the project, the electricity generated by the two windfarms will be sold to state-owned company ‘Guaranteed Buyer State Enterprise’, which is Ukraine’s wholesale electricity market operator.
The wind farms are expected to reduce CO2 emissions by 1.6 million tonnes annually.