OnPath achieves financial close on wind farm

A renewables developer is expanding its operations in Scotland.

Sunderland-headquartered OnPath Energy has reached financial close on its 33.4MW Mill Rig Wind Farm between Strathaven and Darvel, in South Lanarkshire. 

The subsidy-free project will supply power under a long-term agreement with a US technology company offtaker.

Bosses say the wind farm will feature six of the UK’s most advanced turbines, designed to maximise efficiency and energy generation. 

They add that civil engineering work is already well underway, with turbine foundations complete and essential infrastructure in place to keep the delivery programme on track. 

Oliver Hartley, finance director at OnPath Energy, which was acquired in December 2023 by Brookfield Asset Management, one of the world’s largest owners and operators of renewable power plants, said: “Reaching financial close marks the culmination of many months of hard work across all of our project teams and has been achieved thanks to a collaborative approach across our key suppliers, advisors and lenders, harnessing the strong relationships we’ve developed.”

“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.”

NatWest has provided project financing, including a term loan and other facilities to support construction and operation.

Kristofer Gibson, onshore wind lead – infrastructure and project finance at NatWest Project Finance, added: “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."

OnPath’s ‘OnPath Together’ approach prioritises local contractors and businesses, with £91 million invested within 60km of the site. 

Around 300 jobs are expected during construction, with additional roles created indirectly through the supply chain. 

Over its lifetime, the project will fund a £5 million community fund and contribute around £18 million in business rates to South Lanarkshire Council.

Oliver added: “Mill Rig is an important project for OnPath and we’re thrilled to have reached this important stage in its development.

“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.  

“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.”

Mill Rig Wind Farm adds to OnPath Energy’s portfolio, which includes 252MW of current generation capacity, 550MW of consented projects and around 3GW in its overall development pipeline. 

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