Hamilton Locke has advised European Energy on the project financing of the 56MW Mokoan Solar Farm, located in Winton, in the Hume region of Victoria. Project financing was provided by NORD/LB’s Singapore branch.
This marks European Energy’s first financial close in Australia. Once fully operational, the Mokoan Solar Farm is expected to supply renewable electricity to more than 15,000 households. It will also reduce carbon emissions by over 85,000 tonnes. Construction of the project has commenced, with an anticipated completion date in 2025.
“We are thrilled to reach our first financial close in Australia,” says Catriona McLeod, the country manager for European Energy in Australia.
“We see this as the start of many projects by European Energy in the country. We are eager to leverage our capability across renewable energy development, EPC, financing and operations to contribute to meeting Australia’s renewable energy targets.”
Yannis Vasilopoulos, European Energy’s Head of EPC, commented, “This is a significant milestone for European Energy in Australia and more widely as part of our global project portfolio. We are grateful for the guidance and support provided by Matt Baumgurtel and the team at Hamilton Locke, who provided valuable commercial and legal counsel throughout the entire transaction”.
A novel feature of the project is the implementation by European Energy of an in-house EPC delivery model, whereby the company contracts directly with third party engineers, designers, key equipment suppliers and installers via its EPC contractor entity.
Commenting on the transaction, Matt Baumgurtel, Partner and New Energy Lead at Hamilton Locke said, “We are delighted to assist European Energy not only to reach its first financial close in Australia, but also to set a market precedent.
In an industry facing a shortage of skilled EPC contractors, the structuring of the Mokoan Solar Farm projects represents an innovative advancement in the way renewable projects can be delivered in the Australian market.
This transaction heralds a new trend towards direct contracting / soft split contracting, which provides lenders with the certainty and bankability of a full wrap EPC while also giving project owners cost efficiency and control in delivering their projects.”
Hamilton Locke advised European Energy’s in-house EPC contractor on all aspects of the project and project financing, including the EPC and O&M Contracts, design and engineering contracts, key equipment supply contracts and construction and installation contracts.
The Hamilton Locke team was led by Partner and New Energy Lead, Matt Baumgurtel, with support from Senior Associate David O’Carroll, Lawyers William Ryan and Megan Chau and Paralegals Dhanushka Rajaratnam, David Wan, Amy Seedsman and Kusum K C.
The Hamilton Locke team thanks our colleagues at King & Wood Mallesons, led by Jo Crew and Nicola Pearl, who advised European Energy as the borrower, and also at White & Case, led by Cameron Watson, who advised Nord/LB as the lender.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
