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Blekinge Offshore AB has withdrawn its application for an environmental permit for an offshore wind farm off the coast of Sölvesborg, Sweden. The decision comes after the Swedish Armed Forces, in their statement ahead of the main hearing, declared that coexistence in the project area is not feasible.

– Since the Armed Forces have stated that they are not willing to participate in the upcoming main hearing, we see no possibility to proceed under the current circumstances. Therefore, we have withdrawn our application and will revisit the project when conditions change. At present, neither the financial conditions nor the political will exist at the national level in Sweden, says Anders Nilsson, a Sölvesborg resident who has spent nearly 20 years working to make a wind farm in Hanö Bay a reality.

Blekinge Offshore is planned to be located approximately eleven kilometers from the mainland and about five kilometers east of Hanö, within an area in Sölvesborg Municipality’s territorial waters designated as suitable for energy production in Blekinge’s coastal municipalities’ maritime plans.

– The project has a unique local anchoring, with support from all political parties in Sölvesborg. In the longer perspective, we remain convinced that Blekinge Offshore can not only be an important part of Sweden’s electricity supply but also contribute positively to the country’s defense capabilities, says Per Witalisson, CEO of Eolus, the majority owner of the project company.

In 2016, the Swedish government rejected Blekinge Offshore’s permit application for an earlier version of the project, citing the interests of the Armed Forces. The objections at the time mainly related to the project area’s overlap with a marine training zone and insufficient spacing between the wind turbines. Since 2021, a new project has been developed with a 40% smaller area, 90% fewer turbines, and a fourfold increase in the spacing between them—now two kilometers apart.

In collaboration with several municipalities in the region, Blekinge Offshore has proposed an alternative training area five times the size of the wind farm, sought dialogue on minimum flight altitude, and presented potential technical solutions to enhance defense capabilities through installations on the turbines. Some of these include:

  • Sensors enabling the detection of unauthorized activity near the wind turbines.
  • Sensors that capture acoustic signals from nearby aircraft or ships, as well as underwater sensors to detect submarines, complementing radar systems for monitoring activity in the area.
  • Security and intrusion detection systems, such as drones with surveillance capabilities that can patrol the area and provide real-time imagery to military and/or wind farm operators.
  • The possibility of strengthening NATO’s “Drone Wall” project by serving as dual-use platforms for both renewable energy production and defense infrastructure.
  • Potential support for military exercises and naval operations to enhance Sweden’s defense capabilities in areas with wind power installations.

About Blekinge Offshore:
Annual electricity production: 4.3 TWh
Number of turbines: max 70
Total height: max 330 m
Project area size: approx. 150 km²
Spacing between turbines: approx. 2,000 m

Eolus has closed the sale of the 100 MW/400 MWh stand-alone battery energy storage project, Pome, located in Poway, California, USA. The signing of the transaction was previously announced on January 6, 2025. Currently under construction, the project is scheduled to begin commercial operation in the first half of 2025. This marks another important milestone in the project life cycle and transaction, successfully moving the asset closer to COD.

The buyer is a leading privately held renewable energy producer in the U.S., acquiring the project that Eolus has been developing since 2019. Following an investment decision in 2023, construction commenced later that year. The total enterprise value for the project ranges between USD 230 million and USD 235.5 million.

All closing conditions have been met, and the transaction was finalized on February 25, 2025. At closing Eolus received a milestone payment of approximately USD 25 million. Eolus expects to receive further payments in the range of USD 25-30 million in total with the largest part payable at start of commercial operation.

The Pome project has a planned capacity of 100 MW/400 MWh and includes a ten-year tolling agreement with a California load-serving entity. The agreement allows the end-user to store, manage, and dispatch electricity as needed to serve its customers.

About Eolus North America, Inc.
Eolus is actively developing over 5,800 MW of utility-scale renewable energy projects across the Western United States. Since 2021 in addition to Pome, Eolus has developed and sold the following projects: Wind Wall, a 46 MW repowering wind power project in California; Cald, an approximately 120 MW stand-alone battery storage project in California; and Centennial Flats, a 767 MW solar and battery storage project in Arizona.

For further information, please contact:
Per Witalisson, CEO, +46 (0)702 65 16 15
Hans-Christian Schulze, Country Manager US, +1 858 336 0067
Harald Cavalli-Björkman, Investor Relations Manager, +46 (0)705 90 32 04

Fornybar by Eolus Hydro Rein has submitted an environmental permit application for the Humletorp Wind Farm in the southeastern part of Årjäng Municipality. With up to twelve wind turbines, the farm is expected to generate 289 GWh of electricity per year, potentially providing millions of kronor in additional revenue for the municipality and local community.

It has been just over a year since Fornybar conducted public consultations to gather input for the environmental impact assessment, which is included in the application.

“We have conducted thorough assessments of wildlife and nature, as well as studies related to residential environments, and we are now ready to apply for an environmental permit,” says Emma Lundström, Permitting Manager for the project.

The approximately 5 km² area boasts excellent wind conditions and remarkably few conflicts of interest. During the consultations, Fornybar presented a compensation model for nearby residents, which includes an annual income for those living closest to the wind turbines, as well as approximately half a million kronor per year in community funds for local associations. Since then, a government announcement has confirmed additional compensation equivalent to property tax, which will be distributed to municipalities hosting wind power projects starting this year. For Årjäng, this is estimated to amount to approximately 3.5 to 4 million kronor annually, based on the information provided by the government so far.

“Humletorp will secure electricity supply for new and existing industries in Årjäng,” says Erika Torstensson, Project Developer at Hydro Rein, highlighting that the local electricity grid has significant state-planned expansion needs. The construction of a wind farm will help accelerate and finance this expansion, benefiting the entire region.

The Humletorp Wind Farm could become a crucial part of a renewable future for Värmland. The region urgently needs fossil-free electricity to support the ongoing transformation of the industrial and transport sectors. This transition is necessary both to reduce climate impact and to ensure that businesses remain competitive in the global market. According to the collaborative project Elkraft Värmland, energy-intensive manufacturing industries in the region already account for half of the county’s electricity consumption and will require even more power in the near future. In a high-demand scenario, the region’s electricity needs could rise from the current 6 TWh to nearly 10 TWh by 2030.

The environmental permit application for the wind farm has been submitted to the County Administrative Board of Örebro, where the environmental review process is now beginning. If the Humletorp Wind Farm is granted a permit, it is estimated that commissioning could take place by 2031. The application comprises several hundred pages, including a large number of appendices such as noise, shadow flicker, and visibility assessments; reports from three years of bird surveys; an archaeological study; bat surveys covering breeding and migration periods; and a biodiversity assessment – all in compliance with Swedish environmental legislation.

Project Overview
Name: Humletorp Wind Farm
Number of turbines: Up to 12
Project area: Approximately 5 km²
Total height: Maximum 300 m
Estimated annual electricity production: 289 GWh – equivalent to the annual household electricity consumption of approximately 58,000 detached houses.
Planned commissioning: 2031

Media contact: Eva Emmelin, Project Communication Specialist:
eva.emmelin@eolus.com
+46 – 76 108 21 06

Eolus has been granted an environmental permit for a wind farm east of Marbäck in Ulricehamn Municipality. “This is a positive decision both for us as a company and for the region of Västra Götaland, which urgently needs fossil-free electricity,” says Per Witalisson, CEO of Eolus.

The Marbäck wind farm will consist of eight wind turbines with an estimated annual production of approximately 200 GWh of renewable electricity — enough to meet the annual household electricity needs of around 40,000 homes.

In September 2024, the Ulricehamn municipal council approved the environmental assessment of the project. Now, the Environmental Permit Delegation at the County Administrative Board of Västra Götaland (EPD) has granted Eolus an environmental permit to build the wind farm.

“Considering that a large majority of planned wind farms have been halted due to municipal vetoes in the past years, it is very positive that Ulricehamn Municipality approved the Marbäck wind farm and that EPD has now granted permission for its construction,” says Per Witalisson.

The permit decision is based on the environmental impact assessment and other documentation submitted by Eolus and other stakeholders. The authorities have concluded that the project complies with the provisions of the Swedish Environmental Code.

“The fact that the County Administrative Board, like us, recognizes the great potential for renewable electricity production in this project demonstrates Eolus’ experience and competence in developing successful projects. Project Managers Anna Gunnarsson and Jakob Economou have done an excellent job with the application,” says Helena Tillborg, Country Manager Sweden at Eolus.

Västra Götaland has a significant need for fossil-free electricity to enable the ongoing transition in the industrial and transport sectors. This transition is necessary both to reduce climate impact and to ensure that businesses remain competitive globally. According to Statistics Sweden (SCB), approximately 50 percent of the energy used in Västra Götaland today comes from fossil sources, mainly gas and oil. Changing this requires, among other things, electrification of businesses and processes. At the same time, around 70 percent of Västra Götaland’s electricity consumption already depends on imports from other regions.

The Marbäck wind farm will provide benefits to the local community, including community funding for local associations, compensation for nearby residents, land lease payments, and the government-promised compensation to the municipality equivalent to the property tax for wind power.

The County Administrative Board’s decision will now be formally announced, and affected parties will have the opportunity to appeal. Eolus can take the next steps to prepare for an investment decision once the ruling becomes legally binding. The wind farm is expected to be operational by 2028/2029.

For further information, please contact:
Helena Tillborg, Country Manager Sweden at Eolus, +46 70 975 96 06, helena.tillborg@eolus.com
Stefan Gustavsson, Public Affairs Manager at Eolus, +46 73 428 21 34, stefan.gustavsson@eolus.com

Eolus presents stable earnings along with new financial goals for the period 2025–2027

1 October-31 December 2024

  • Sales amounted to 729 (155) MSEK.
  • EBIT amounted to 437 (99) MSEK. Profit before tax amounted to 433 (94) MSEK.
  • Net profit amounted to 315 (71) MSEK.
  • Earnings per share, before and after dilution equaled 12.67 (2.85) SEK.
  • At the end of the period, Eolus had 967 (941) MW under asset management.

1 January-31 December 2024

  • Sales amounted to 851 (2,301) MSEK.
  • EBIT amounted to 288 (764) MSEK. Profit before tax amounted to 272 (719) MSEK.
  • Net profit amounted to 155 (573) MSEK
  • Earnings per share, before and after dilution equaled 6.22 (23.00) SEK.
  • At the end of the period, Eolus had 967 (941) MW under asset management.
  • The Board of Directors proposes a dividend of 2.25 (2.25) SEK per share.

Significant events during the period

  • Eolus received a substantial milestone payment amounting to 705 MSEK for the solar and battery storage project Centennial Flats in the USA. The milestone payment had a positive effect of 564 MSEK on Eolus’ operating profit in the fourth quarter.
  • The Swedish government announced the rejection of 13 applications for offshore wind power projects in the Baltic Sea, including Eolus’s projects Skidbladner (1,000 MW) and Arkona (1,200 MW). Eolus took write-downs for the projects already in the third quarter.

Significant events after the balance sheet date

  • Eolus has signed an agreement to sell the 100 MW/400 MWh stand-alone battery energy storage project, Pome, located in Poway, CA, U.S. The total enterprise value for the project is in the USD 230-235.5 million range. Closing of the transaction is expected in the first quarter 2025.

Comment from CEO Per Witalisson

“The fourth quarter and full year 2024 were Eolus’ second-best so far, with a large milestone payment from a solar and battery project in the the US more than making up for a subdued European market. With yet another large American sale secured, a strong deal pipeline and new financial goals we proceed into the business plan for 2025–2027 with confidence.”

Financial Summary

  Unit Q4 2024 Q4 2023 FY 2024 FY 2023
Net sales MSEK 729 155 851 2,301
EBIT MSEK 437 99 288 764
Profit before tax MSEK 433 94 272 719
Net profit MSEK 315 71 155 573
Earnings per share before and after dilution SEK 12.67 2.85 6.22 23.00
       
Equity per share SEK 66.90 60.63 66.90 60.63
Cashflow from operating activities MSEK -257 -407 -1,796 -152
Total assets MSEK 4,562 2,808 4,562 2,808
Net debt – /net cash + MSEK -1,788 120 -1,788 120
       
Order backlog MSEK 180 665 180 665
Project under construction MW 456 368 456 368
Taken into operation and handed over to customer MW 0 125 0 525
Project portfolio MW 25,880 26,836 25,880 26,836
Managed turbines MW 967 941 967 941
       
Equity/assets ratio % 38 56 38 56
Return on equity after tax % 10 46 10 46

Eolus Vind AB’s Interim Report for Q4 2024 will be published on Thursday 13 February 2025 at 7:45 a.m. (CET). At 10:00 a.m. the same day a webcast with teleconference will be held, where the report is presented by CEO Per Witalisson and CFO Catharina Persson.

In connection with the presentation, it will be possible to ask questions through the teleconference or in written form through the webcast. The presentation will be held in English.

Webcast:
If you wish to participate via webcast, please use the link below:
https://eolus.events.inderes.com/q4-report-2024
Via the webcast you can ask written questions.

Teleconference
If you wish to participate via teleconference please register on the link below: https://conference.inderes.com/teleconference/?id=5009735
After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

Eolus has submitted an application for an environmental permit for the Grindtorpet wind farm in Nybro municipality. With up to eight wind turbines, 210 million kWh can be produced annually. A much-needed addition to southern Sweden, which has a significant electricity production deficit.

“We see that the area has good conditions for wind power. It is very windy and sparsely populated. Additionally, it is located in electricity price area 4, which has a significant shortage of electricity production,” says Project Manager Carl Sterky.

The high electricity prices in southern Sweden are largely due to the lack of electricity production while consumption is high. This means that electricity needs to be transported from other parts of Sweden and other countries, which is expensive. New electricity production is much needed, along with new economic incentives for the municipality.

“The government decided last autumn that money equivalent to the property tax that wind power already pays should be returned to the municipality where the electricity is produced. Together with annual compensations to nearby residents and, for example, associations, this will amount to millions of kronor that can benefit the local community each year,” says Carl.

The area for the wind farm has been partially designated by Nybro municipality as suitable for wind power, and within the project area, there are no areas of national interest that require protection according to the Environmental Code.
“It is extremely difficult to find sites for new electricity production in southern Sweden, where the need is great and expected to grow in the coming years. Therefore, it is important to have the opportunity to investigate the most suitable sites,” Carl continues.

The application for an environmental permit for the wind farm has been submitted to the Environmental Assessment Delegation at the County Administrative Board of Kalmar County, where the environmental assessment process now begins. Nybro municipality will be asked if they want to approve an assessment of the wind farm. If Grindtorpet receives a permit, it is estimated that it can be built and put into operation by 2031.

Project Summary:

  • Name: Grindtorpet Wind Farm
  • Number of turbines: max 8
  • Project area: approx. 5.9 km²
  • Total height: max 300 m
  • Estimated annual electricity production: 210 GWh
  • Planned operational start: 2031

Eolus has signed an agreement to sell the 100 MW/400 MWh stand-alone battery energy storage project, Pome, located in Poway, CA, U.S. The project is currently under construction, with planned commercial operation in the first half of 2025. This marks Eolus’ fourth project sold in the United States.

The buyer is a leading, privately held producer of renewable energy in the U.S. Eolus has been developing the project since 2019. Following an investment decision in 2023, construction commenced later that year. The total enterprise value for the project is in the USD 230-235.5 million range.

Closing of the transaction is subject to fulfilment of certain conditions and is expected to occur in Q1 2025.

The project has a planned capacity of 100 MW/400 MWh and includes a ten-year tolling agreement with a California load-serving entity. The agreement allows the end-user to use the battery system to store, manage, and dispatch stored electricity to its customers.

“I am excited that Eolus has successfully executed another transaction in the U.S. Through competent project development, we have created significant value and achieved a good margin on this project. There is a strong market for energy storage and renewable energy projects in the U.S., and our investments made in the region since 2015 are paying off.”, says Per Witalisson, CEO of Eolus.

“Pome will add valuable support to the energy system in California while realizing significant value for Eolus and its shareholders. The batteries are currently being installed onsite, and our dedicated team is steering the project toward a successful delivery to its new owner.”, says Hans-Christian Schulze, Country Manager of Eolus North America.

About Eolus North America, Inc.
Eolus is actively developing 5,800 MW of utility-scale renewable energy projects in the Western United States. Since 2021, the following projects have been under Eolus’ development: Wind Wall, a 46 MW repowering wind power project in California; Cald, an approximately 120 MW stand-alone battery storage project in California; and Centennial Flats, a 767 MW solar and battery storage project in Arizona.

Today, the Government Inquiry into offshore wind power has submitted its final report, Wind Power at Sea – A Transition to an Auction System. Eolus welcomes the investigation’s proposal to continue processing permit applications under the current system until an auction system potentially comes into effect.

“Hundreds of millions have been invested in studies and applications for offshore wind power projects in recent years. It is important that these investments are not lost, and we expect the government to now accelerate the processing of the projects currently on their desk,” says Emil Nordström, Head of Project Development at Eolus.

The investigation also presents proposals on principles for how permits can be assessed under current legislation, including considerations of feasibility and costs.

“Costs – and thus electricity prices – has received far too little attention in the debate. It’s easy to talk about building offshore wind power far out at sea without discussing costs and feasibility. We therefore view positively the investigation’s openness to factoring in such aspects, even under current legislation.

“To illustrate: we have the Najaderna project off Gävle/Tierp, which is relatively close to shore and involves comparatively few conflicting interests. This increases the likelihood of realizing the project, as connection cable costs are kept lower, the water is shallower, and coexistence is possible.

“Another example is Västvind, where Eolus has a close collaboration with Göteborg Energi to connect the wind farm directly to Gothenburg’s local grid, right onto Hisingen, where electricity-intensive industries like Volvo Cars operate. Since grid connection is often a challenge, this provides both time and cost advantages.

“By incorporating these aspects into the permitting process, the likelihood of projects actually being realized increases.”

Based on a study by Sweco, the investigation concludes that there are currently no market conditions conducive to building offshore wind power in Sweden.

“We also see that, given current cost levels and electricity price forecasts, there may be challenges in achieving profitability, but market conditions change. Therefore, we urge the government not to wait but to speed up and grant permits wherever possible, so investors can be ready to act when conditions align. Furthermore, the government should embrace the investigation’s proposal for state support for projects approved during the transition period. This is a crucial component and would enable offshore wind power to be realized even before an auction system is in place,” Emil Nordström concludes.

For more information, please contact:
Emil Nordström, Head of Development at Eolus, +46 70 692 42 28, emil.nordstrom@eolus.com
Karin Wittsell Heydl, Chief Communications and Sustainability Officer at Eolus, +46 76 116 71 99, karin.heydl@eolus.com

Positioned to leverage potential in both Europe and the US

1 July-30 September 2024

  • Net sales amounted to 24 (127) MSEK.
  • EBIT amounted to -94 (159) MSEK. Write-downs amounting to 40 MSEK for the offshore projects Arkona and Skidbladner affect the results. Profit before tax amounted to -87 (134) MSEK.
  • Net profit amounted to -79 (94) MSEK.
  • Earnings per share, before and after dilution equaled -3.16 (3.79) SEK.
  • At the end of the period, Eolus had 967 (817) MW under asset management.

1 January-30 September 2024

  • Net sales amounted to 123 (2,146) MSEK.
  • EBIT amounted to -149 (665) MSEK.
  • Profit before tax amounted to -161 (625) MSEK.
  • Net profit amounted to -161 (502) MSEK.
  • Earnings per share, before and after dilution amounted to -6.45 (20.14) SEK.
  • At the end of the period Eolus had 967 (817) MW under asset management.

Significant events during the period

  • Eolus appointed Åsa Lamm as Chief People & Culture Officer and member of the Group Management. She assumed her position on 16 September 2024
  • The Board of Directors resolved to repurchase own shares on Nasdaq Stockholm. The purpose of the repurchase is to secure future delivery of shares to the participants of Eolus’s long-term share savings program. Eolus purchased 18,000 own series B shares in September.

Significant events after the balance sheet date

  • Eolus received a substantial milestone payment amounting to 64.7 MUSD for the solar and battery storage project Centennial Flats in the USA. The milestone payment is estimated to have a positive effect on Eolus’s operating profit of USD 51 million in the fourth quarter.
  • The Swedish government announced the rejection of 13 applications for offshore wind power projects in the Baltic Sea, including Eolus’s projects Skidbladner (1,000 MW) and Arkona (1,200 MW). Write-downs amounting to 40 MSEK have impacted the third quarter results.

CEO comment

To summarize, we are seeing a split picture, where the situation is challenging in some of Eolus’s European markets, especially in the Nordic region, but the willingness to invest remains strong in the US. After almost 35 years in the industry, Eolus has both experience and stamina, and we feel confident that we can balance a weaker European market with a strong trend in the US.

– Per Witalisson, CEO

Financial Summary

  Unit Q3 2024 Q3 2023 9 months 2024 9 months 2023 Rolling 12 Oct-Sep 12 months 2023
Net sales MSEK 24 127 123 2,146 278 2,301
EBIT MSEK -94 159 -149 665 -49 764
Profit before tax MSEK -87 134 -161 625 -67 719
Net profit MSEK -79 94 -161 502 -90 573
Earnings per share before and after dilution SEK -3.16 3.79 -6.45 20.14 -3.59 23.00
           
Equity per share SEK 52.39 59.44 52.39 59.44 52.39 60.63
Cashflow from operating activities MSEK -1,042 -369 -1,539 255 -1,946 -152
Total assets MSEK 3,989 2,709 3,989 2,709 3,989 2,807
Net debt – /net cash + MSEK -1,415 522 -1,415 522 -1,415 120
           
Order backlog MSEK 832 726 832 726 832 665
Project under construction MW 456 394 456 394 456 368
Taken into operation and handed over to customer MW 0 0 0 400 125 525
Project portfolio MW 26,251 25,468 26,251 25,468 26,251 26,836
Managed turbines MW 967 817 967 817 967 941
           
Equity/assets ratio % 35 57 35 57 35 56
Return on equity after tax % neg 45 neg 45 neg 46

Presentation of the report
At 10:00 today, CEO Per Witalisson and CFO Catharina Persson will present the report via a webcast with telephone conference.

In connection with the presentation, it will be possible to ask questions through the teleconference or in written form through the webcast. The presentation will be held in English.

Webcast
If you wish to participate via webcast, please use the link below:
https://ir.financialhearings.com/eolus-q3-report-2024
Via the webcast you can ask written questions.

Teleconference
If you wish to participate via teleconference, please register on the link below:
https://conference.financialhearings.com/teleconference/?id=50049446
After registration you will be provided phone number and a conference ID to access the conference.
You can ask questions verbally via the teleconference.

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