A few years ago, the Tågeröd wind farm was Waros Energi’s ambitious vision. Waros Energi – a renewable energy company that produce electricity from used and reinstalled wind turbines – envisioned four wind turbines on the Tågeröd site in Sweden but still required additional financing. Through ECOHZ GO2, a new renewable project financing solution, H&M enabled the construction of the four wind turbines which now produce electricity at Tågeröd.
Lacking finance to complete the renewable energy plant
“Before we heard of GO2, we were short 5-10% of the financing needed to build the Tågeröd wind farm,” says Petter Elmstedt, CEO of Waros. “There was a gap between our own equity and what the bank could offer. The bank would only lend us the money required, if we could raise the gap between our equity and the loan. So we were looking for alternative ways to finance the project.”
Smaller renewable energy projects often struggle to secure financing. “Having ECOHZ GO2 that can work with a smaller company like us makes all the difference. We could never have realised our dream of building four windmills in Tågeröd if GO2 had not provided the top-financing with the attractive interest rates,” continues Elmstedt.
The ECOHZ Renewable Energy Foundation is constantly on the lookout for European renewable energy projects that are close to being realised, with completed project plans and requisite government approvals but a shortage in financing.
“Waros heard about ECOHZ after a conference we arranged with Svensk Vindenergi in Sweden,” says Kjetil Røneid, Finance Director, ECOHZ & Managing Director ECOHZ Renewable Energy Foundation. “Usually, we have a renewable energy project with a prospect that we introduce to interested companies. With Tågeröd it was different. H&M had confirmed that they would purchase ECOHZ GO2 and we were looking for a smaller power plant in Sweden in need of top-financing.”
Tågeröd secured its top-financing with GO2 and H&M. “ECOHZ Renewable Energy Foundation quickly understood our needs, produced the proof of funds and Waros received the loan agreement. The bank was very pleased with our cooperation with ECOHZ,” explained Elmstedt. “I’d like to add that our contact in ECOHZ always took the time to really understand our needs and the project’s needs. He was always just a call away – and we could ask him anything. A real partner that we could rely on.”
Four windmills producing electricity thanks to H&M’s bold commitment and ECOHZ GO2
With H&M buying ECOHZ GO2, Tågeröd got the extra funding needed to go ahead with the project. Waros has built Tågeröd using existing wind turbines from a windfarm in the Netherlands that were destined to be replaced by larger wind turbines. Waros acquired and recycled four used wind turbines that were carefully dismantled, refurbished and reconstructed. “We have done to renewable energy, what European ski lift operators have done for years on the continent: dismantling, servicing and reconstructing ski lifts,” says Elmstedt. “We do everything from working on the rotor blades, checking and servicing main componenets and some we replace with new parts, such as gearbox, generator and transformers, so that we can rely on them”. This recycling process reduces the overall cost of installing new renewable energy. and “It is also more environmentally friendly to recycle and reuse them than further producing additional wind turbines,” adds Elmstedt.
These four wind turbines will produce electricity for nearly 2,000 households in Sweden.
“Building Tågeröd is symbolic for the whole renewable energy industry – it is a new way of financing renewable energy projects,” says Elmstedt before pausing. “Our windmills would not be producing electricity today if it was not for H&M’s bold commitment and ECOHZ GO2.. We are so proud to have such a global brand, known for its values, supporting us.”