Horizon Capital Invests in Ukrainian Renewable Energy with €152 Million Fund Closing
- Horizon Capital's Catalyst Fund has raised €152 million to invest in renewable energy and infrastructure projects.
- Horizon Capital will acquire a 45% stake in a 124 MW wind power project in Ukraine, mobilizing over €220 million.
- The investment is expected to create over 300 construction jobs and 50 permanent positions, supporting regional economic growth.
Horizon Capital's Strategic Investment in Ukrainian Renewable Energy
Horizon Capital, a leading private equity firm specializing in Emerging Europe, announces a significant development with the initial closing of its Horizon Capital Catalyst Fund (HCCF). The fund, having raised €152 million—over 50% of its €300 million target—focuses on investing in capital-intensive sectors, including energy and infrastructure. The recent investment in a 124 MW wind power project in Ukraine's Odesa region marks a pivotal step in the firm's strategy to drive growth in essential sectors that have a lasting positive impact on the economy and the environment.
The HCCF’s inaugural investment involves a partnership with Notus Energy, a Germany-based renewable energy company. Horizon Capital will acquire a 45% stake in the wind power project, which is expected to mobilize a total investment exceeding €220 million. This financing will be bolstered by structured debt from prominent international development finance institutions, including the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and others. The project's anticipated output of 378 GWh of clean electricity per year is projected to power approximately 120,000 households, while also contributing to significant reductions in CO₂ emissions—approximately 244,000 tons annually.
The strategic importance of this investment is further underscored by the expected economic benefits it will bring to the region. In addition to generating clean energy, the project is set to create over 300 jobs during its construction phase and an estimated 50 permanent positions thereafter, aligning with international environmental and social standards. Notus Energy's broader pipeline in Ukraine includes plans for three wind farms totaling around 300 MW and a comprehensive renewable energy development pipeline exceeding 1.3 GW across different stages. This ambitious endeavor reflects both Horizon Capital's commitment to fostering sustainable growth in Ukraine and the essential role of renewable energy in shaping the future of the region's energy landscape.
In related news, the involvement of Oleksii Sobolev, Ukraine's Minister of Economy, Environment, and Agriculture, during the signing ceremony highlights the project's strategic significance for Ukraine's energy sector. Horizon Capital's focus on reconstruction projects extends beyond renewable energy, encompassing digital infrastructure and construction, indicating a diversified approach to investment in high-capital sectors that are crucial for economic recovery and sustainability in the region.