OnPath Energy has achieved financial close on a 33.4 MW Scottish onshore wind project, securing a subsidy-free, long-term route to market with a US technology company offtaker. The Mill Rig wind farm, located between Strathaven and Darvel in South Lanarkshire, will feature six turbines equipped with some of the UK's most advanced technology to maximize energy generation and efficiency.

Project Financing and Development

NatWest provided project financing for the asset through a long-term agreement that includes a term loan and other ancillary facilities to support the project throughout its construction and operational life. OnPath Energy has financed the project to date, with civil engineering works already at an advanced stage. Essential infrastructure work has been completed, and all turbine foundations have been constructed, helping to maintain the delivery programme.

The project represents OnPath Energy's continued support for Scotland's ambitious renewable energy goals. Oliver Hartley, Finance Director at OnPath Energy, explained the company's strategic positioning: “Being part of the Brookfield ecosystem supports us through access to capital and PPA markets, which in the case of Mill Rig includes securing a long-term offtake agreement with a US technology company as well as finance from NatWest.”

Project Partnerships and Implementation

OnPath Energy is working with several key partners on the Mill Rig project, including Wilson Forest Products, local civil engineers RJ McLeod, and turbine manufacturers Nordex. Hartley described the collaborative approach: “Working with our partners, Wilson Forest Products, local civil engineers RJ McLeod and turbine manufacturers Nordex, we're delivering a highly efficient project that has community support.”

Kristofer Gibson from NatWest Project Finance commented on the financing arrangement: “We are delighted to provide OnPath Energy with this bilateral financing to enable the construction of Mill Rig wind farm. The transaction marks our continued support to the onshore wind sector and strengthens our relationship with a leading player in the UK energy transition.”

Economic Impact and Local Investment

As part of OnPath Energy's 'OnPath Together' development approach, the project is expected to directly support around 300 jobs through its construction period, with additional jobs generated indirectly through the wider supply chain. The company has committed to prioritizing local contractors and businesses in the project's execution.

OnPath Energy will invest GBP 91 million within 60 kilometers of the site, with this spending allocated locally throughout the project's development, construction, and operation phases. This investment strategy demonstrates the company's commitment to supporting the regional economy.

Community Benefits and Long-term Commitments

Over its operational lifetime, Mill Rig wind farm has committed to delivering a GBP 5 million community fund that will support local people, environmental groups, and community organizations within a 10-kilometer radius of the site. This fund represents a significant long-term investment in the local area. South Lanarkshire Council will receive approximately GBP 18 million in business rates over the project's lifetime, providing substantial revenue for local government services and infrastructure.

Hartley expressed enthusiasm about the project's broader impact: “Mill Rig is an important project for OnPath, and we're thrilled to have reached this important stage in its development. We're looking forward to seeing the six turbines fully operational and delivering social, environmental, and economic benefits for the local community and the wider UK following completion of the project.”

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