€850mn green bond issued by innogy for wind power projects
German-based innogy, has issued €850mn in an inaugural corporate green bond in order to refinance wind energy projects throughout Europe.
The bond, with an annual coupon rate of 1.25%, was issued through innogy Finance and guaranteed by innogy.
The energy group used its Green Bond Framework, which comprises energy efficiency and eMobility projects, to create place the bond.
The framework allows the ten-year maturity with the yield-to-maturity arriving at 1.36% per year.
Many of the wind power projects are already in operation, with the remaining currently under construction.
The combined capacity of all of the projects will annually generate 3TWh, creating enough energy to power about 830,000 houses.
“innogy is a sustainable company by conviction and business model,” commented Bernhard Günther, innogy Chief Financial Officer.
“Proceeds from the bond are expected to be used to refinance four offshore wind projects in the UK and Germany,” he added.
“Setting up a Green Bond Framework and issuing the first benchmark corporate Green Bond in Germany is a logical step to underline this position.”
The framework was initiated to correspond with the Green Bond Principles 2017, published by International Capital Market Association (ICMA).
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.