IFC may provide Elementum Energy EUR 60 million for two wind farms in Ukraine
The International Finance Corporation (IFC) is considering a loan of up to EUR 60 million to Elementum Energy to implement two new wind projects in Ukraine with a combined capacity of 257.6 MW, according to IFC information.
The total cost of the two projects is estimated at EUR 400 million. The IFC is considering an A loan of up to EUR 60 million from its own funds, as well as the possibility of raising additional financing through a B loan and parallel loans from other lenders.
The credit facility may reach EUR 250 million
The proposed financing envisages a corporate green credit facility of up to EUR 250 million for Elementum Energy, with its subsidiaries Dnistrovska Vitroelektrostantsiia LLC and Windpark West-R LLC as co-borrowers.
The money is planned for developing and building two wind farms: the Dunai project of 57.6 MW and the Ternopil project of 200 MW, also known as Windpark West-R. Elementum Energy had earlier planned to commission Dunai in southern Odesa Region by the end of 2026 and to launch the 200 MW Ternopil wind farm in western Ukraine in 2028. The western project also includes associated infrastructure, notably a 110 kV overhead line connecting to an existing 330/110/10 kV substation.
Pilot BESS
Separately, the IFC, as an implementing entity of the Clean Technology Fund (CTF), may provide financing for a pilot energy storage system of 10 MW and 20 MWh. The BESS is planned for one of Elementum Energy's existing sites.
According to the IFC, together with the CTF and EC-UIF under the ERA programme for Ukraine, the corporation could provide EUR 79 million in co-investment, including first-loss guarantees for the IFC and other lenders, a senior loan and other project financing. The EBRD had earlier also approved up to EUR 70 million for Elementum Energy to build the two wind farms.
Elementum Energy is a subsidiary of the US-based VR Capital Group and invests in Ukraine's renewable energy. The company manages a portfolio of solar and wind power plants with a combined capacity of 636 MW and is developing new projects in wind power and energy storage.