Polhem Infra – focusing on sustainable infrastructure investments in the Nordics – has entered into a partnership with funds managed by Prime Capital AG for construction of the 265 MW Lynx portfolio in Lycksele in Sweden.
Following the agreement on partnership construction and planning is now under way for the Fjällberg, Vinliden and Hornmyran wind farms estimated to start production in 2027. Polhem Infra and Prime’s investment of ca EUR 420 million is expected to bring in total some 1 TWh of new renewable energy production to Sweden from 2027. This corresponds to the consumption of approx. 100,000 households and will provide renewable energy to enable industrial energy transition in the north.
The portfolio also includes a regulated grid company connecting the wind farms to the regional grid through a new substation and that will manage a 70 km new 170 kV overhead line. Polhem Infra acquires 49% of the portfolio and will invest in it alongside funds managed by Prime Capital AG (“Prime Capital”).
The wind farms will have state of the art turbines specifically designed for the northern region and local environment with high local wind speeds estimated to have a capacity factor north of 40%. The project will now progress and build on the early development by Prime Capital and RES with the aim of minimizing the cost of energy through efficient construction, operations and outlining routes for revenue management and financing.
Polhem Infra and Prime Capital’s co-investment in this large-scale onshore wind farm portfolio demonstrates that Swedish wind power still has a significant role to play in the future Nordic energy market and as a key enabler for the energy transition towards a net zero greenhouse gas emission future.
Anna Elmfeldt, CEO of Polhem Infra commented:
“We are thrilled to partner with Prime Capital on this portfolio enabling much needed large-scale renewable energy production for the Swedish energy transition and electricity demand increase over the coming decades. It demonstrates that there are very good renewable energy projects in Sweden that can provide long term attractive returns this portfolio provides a much welcome addition of cost-efficient renewable energy production and another step in fulfilling Polhem Infra’s dual mission of investing on long term assets that generate both strong risk-adjusted return as well as providing societal critical infrastructure.”
Dr. Mathias Bimberg, Head of Infrastructure at Prime Capital commented:
“We have been one of the largest and most active investors in renewable energy and the energy transition in the Nordics during the past years with an investor base coming primarily from outside the Nordics. This marks the last construction project for our Prime Green Energy Infrastructure Fund I. We will continue our activities through our second fund with an increased focus on eFuels supporting Nordic economies turning into hydrogen economies. I am proud and very excited about the new partnership with the Polhem Infra’s team for Lynx and for the continued joint development of this high-quality portfolio”
About Prime Capital
Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure with a focus on Energy Infrastructure, and Private Debt. Furthermore, the company provides Access Solutions for the access to Alternative Investments through securitisations and fund structures.
Prime Capital was founded in 2006 and currently employs about 125 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of September 2024, Prime Capital has approximately EUR 4.3bn Assets under Management as well as EUR 8.6bn Assets under Administration.
About Polhem Infra
Polhem Infra invests in infrastructure. Polhem Infra is an active, long-term owner with high sustainable ambitions in its investments. Polhem Infra was founded in 2019 and is owned by the First, Third and the Fourth Swedish National Pension Fund (AP Funds). The focus is direct investments in unlisted Swedish companies within digital infrastructure, renewable electricity production and energy in the private and public sector. Within these areas there will be substantial changes and there is a need for long-term active Swedish ownership. Polhem Infra’s vision is a sustainable, well-functioning and efficient infrastructure.
About the Swedish National Pension Funds (AP Funds)
The AP Funds manage the buffer capital in the general pension system on behalf of the Swedish Parliament and the Swedish people for the benefit of today’s and tomorrow’s pensioners. The AP Funds (AP1 – AP4) have the same mission, but different management strategies and are governed by the Public Pension Funds Act (2000:192). At the turn of the year, the fund’s capital amounted to close to SEK 2,000 billion. The AP Funds balance inflows and outflows to the pension system. The assets make up about 16 percent of the asset side of the pension system.
Polhem Infra is owned by three AP funds www.ap1.se www.ap3.se www.ap4.se
