RENEWABLES developer OnPath Energy has achieved financial close on a 33.4MW onshore wind project in South Lanarkshire, described as having a ‘subsidy-free long-term route to market’ with a US technology company offtaker.
The six-turbine Mill Rig Wind Farm, which sits between Strathaven and Darvel, will increase OnPath Energy’s support for Scotland’s renewable energy goals.
The project is expected to directly support around 300 jobs through its construction period, with many more generated indirectly through the wider supply chain. OnPath Energy has committed to prioritising local contractors and businesses.
NatWest provided project financing for the asset, with the long-term agreement including a term loan and other ancillary facilities to support the project throughout its construction and operational life.
OnPath Energy has financed the project to date and civil engineering works are already at an advanced stage, with essential infrastructure work completed and all the turbine foundations constructed.
Oliver Hartley, finance director at OnPath Energy, said, “Reaching financial close marks the culmination of many months of hard work across all of our project teams and has been achieved thanks to a collaborative approach across our key suppliers, advisors and lenders, harnessing the strong relationships we’ve developed.
“Being part of the Brookfield ecosystem supports us through access to capital and PPA markets, which in the case of Mill Rig includes securing a long-term offtake agreement with a US technology company as well as finance from NatWest.
“Mill Rig is an important project for OnPath and we’re thrilled to have reached this important stage in its development.
“Working with our partners, Wilson Forest Products, local civil engineers RJ McLeod and turbine manufacturers Nordex, we’re delivering a highly efficient project that has community support. We’re looking forward to seeing the six turbines fully operational and delivering social, environmental and economic benefits for the local community and the wider UK following completion of the project.”
Kristofer Gibson, NatWest project finance, added, “We are delighted to provide OnPath Energy with this bilateral financing to enable the construction of Mill Rig Wind Farm. The transaction marks our continued support to the onshore wind sector and strengthens our relationship with a leading player in the UK energy transition.”
Over its lifetime, Mill Rig Wind Farm has committed to delivering a £5 million community fund supporting local people, environmental and community groups within a 10km radius of the site, while South Lanarkshire Council will receive around £18 million in business rates.
