Cloudberry Clean Energy Annual report 2020

25 Cloudberry Annual report 2020 Board of Directors report hired at the office in Karlstad. The company has a dynamic approach to the project backlog portfolio and projects will either be developed, sold or discon- tinued based on the projects’ characteristics and prospects for further development. Important projects and events: On-shore · Project Hån is located close to Marker wind farm, a project that Cloudberry developed, constructed and later sold to BKW in Årjäng municipality, Sweden. Detailed planning for Hån is underway with final investment decision expected in 2021. The project has received an import license from the Norwegian authorities and awaits a final power export license from the Swedish authorities before construction may start. The estimated annual pro- duction is around 70 GWh with an installed capacity of 21 MW. Production is expected to start in 2022. Cloudberry owns 100% of the project. · Project Duvhällen is located in the Eskilstuna munici- pality, Sweden. Duvhällen has an approved grid capacity for 30 MW and is awaiting an increase to 60 MW. The estimated annual production is around 83 GWh and 156 GWh based on an installed capac- ity. Production is expected to start in the Fall of 2023. Cloudberry owns 100% of the project. · Cloudberry acquired the wind power development company Skogvind AS, adding around 120 MW to a total backlog of 370 MW. Shallow water & off-shore The company has been involved in offshore wind power since 2010 and has significant development expertise. · Project Vänern, a nearshore shallow water wind project located at Stenkalles grund in Lake Vänern, the largest lake in Sweden. The project has received a permit to build 20 wind turbines with a total installed capacity of 100 MW and was repurchased by Cloudberry in 2020. An agreement with Downing LLP was entered into in January 2021 for the sale of 80% of the project. The target is a Financial Investment Decision during 2021 and commercial operation in 2023. · Project Baltic Sea. Based on the experience and expertise gained from the Väneren project, Cloudberry will explore the opportunity to develop offshore projects in the Baltic Sea. The company has a substantial offshore wind development portfolio of about 2,500 MW in Sweden, and the portfolio is currently not reflected in Cloudberry’s balance sheet. Hydropower The company has a portfolio of several licensed hydropower projects. An application has been made for an extended deadline for the start of construc- tion of three projects. Cloudberry Corporate There was significant corporate activity in 2020. The company has, during the year, built a listed growth platform for renewable projects in the Nordics and secured a significant backlog of well progressed projects in the region. The producing and under construction portfolio has increased 7x during the year and attracted well-known partners as Fontavis (Swiss Life) and Downing LLP. Cloudberry Corporate, segment 2020 Revenue NOK million - EBITDA NOK million -16 By year end, there were four employees in the corporate segment. Cloudberry has outsourced several services in connection with Oslo Børs listing, financing and due diligence processes. The corpo- rate management aims to remain a cost-effective, agile and dynamic team. Risk Management Cloudberry is exposed to various risks through its business’ value chain, including operational, political and financial risks. Cloudberry has extensive routines and policies in place to actively manage risks. Key risks are discussed, and policies are reviewed and approved by the Board of Directors on a regular basis. Operational and market risk All processes throughout the value chain are exposed to operational risk. A key operational risk is related to the operating performance of the produc- ing assets, but there is also risk relating to the pro- cess of transitioning development projects from the backlog and pipeline stage. Even though Cloudberry has a solid project pipeline, finalizing the projects is