Allens advises Orora on another corporate PPA

Allens has acted for Orora Limited on an innovative long term power purchase agreement (PPA) in relation to the 228MW Lal Lal wind farm project in Victoria.

The PPA involves arrangements between Orora, the owners of the Lal Lal wind farm (Macquarie Capital, InfraRed Capital Partners and Northleaf Capital) and Nephila Climate and Allianz Global Corporate & Speciality's alternative risk transfer unit. The effect of these arrangements, which include a proxy revenue swap, is to provide Orora with a fixed volume PPA in relation to electricity demand for its Victorian and New South Wales operations.

Commenting on the PPA, partner Kate Axup said this further work with Orora not only builds on the experience the Allens team has in negotiating corporate PPAs, but is also an example of the developing market for corporate PPAs in Australia.

'Corporate PPAs are helping large consumers of electricity to hedge their exposure to high electricity prices, at the same time as adding to their green credentials. They are also providing project sponsors with a new way to get their projects off the ground', Kate said.

'We were delighted to work with the team at Orora on this PPA which is the first of its kind in the Australian market', Managing Associate Melissa Keane said.

Orora is a leading packaging solutions business.

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