Energy Central-News Article

Keppel Infrastructure Holdings has formed a joint venture with MET Group - called Keppel MET Renewables - to pursue renewable energy opportunities in Western Europe.

The tie-up between KI and MET Group follows their previous strategic partnership, when the former acquired a 20% stake in MET Group in 2020.

The new joint venture, Keppel MET Renewables, will invest in solar and onshore wind assets to complement MET Group's business in Europe. The goal of this union is to rapidly scale up to at least 1 GW in operational and ready-to-build renewable energy projects.

As part of the strategic agreement, KI is divesting a 10% stake (of the 20% it owned) to Benjamin Lakatos, founder and CEO of MET Group, reinvesting the proceeds.

The Keppel Group will thus invest approximately E30 million as seed capital in Keppel MET Renewables. Subsequently, KI and MET Group will own 49.9% of Keppel MET Renewables respectively and the remaining 0.2% will be held by MET's owner.

Keppel MET Renewables will have an initial portfolio of 213 MW of early-stage solar projects located in Italy from MET Group. Commercial operation of these assets is expected to take place, in phases, between the end of 2024 and mid-2025.

Both Keppel Infrastructure and MET Group will leverage the joint venture to drive the growth and transformation of their power generation portfolio towards renewable energy and low-carbon energy infrastructure assets.

This transaction underscores Keppel's commitment to achieving Vision 2030 targets and MET's renewable business target of 2 GW.

Upon completion of this investment, Keppel Group will have approximately 2.6 GW of renewable energy assets on a gross basis, including assets under development.

Keppel MET Renewables will continue to pursue such opportunities in other countries such as France, Germany, Portugal and Spain.

Benjamin Lakatos, founder and CEO of MET Group added: "I am very pleased that we are moving to the next level in our strategic partnership with Keppel. The renewable energy joint venture we have created is the right platform for our cooperation and fits perfectly into the long-term vision of both companies. MET and Keppel are dedicated to supporting the energy transition in Europe."

Following the transaction, MET Group remains majority owned by its management and Keppel Infrastructure will retain its representation on the MET Group board of directors.