BW Ideol has entered into a final agreement for a funding injection from French state-backed investor ADEME Investissement to set up a new floating wind company.
Under the agreement, BW Ideol will transfer its co-development portfolio to BW Ideol Projects Company and ADEME Investissement will invest an initial €17.85m paid at the first financial closing date planned in September 2023.
Subsequent capital injections will be based on funding calls with a co-financing at equal share between BW Ideol and ADEME Investissement.
When all funding calls are completed, ADEME Investissement and BW Ideol will have both invested €40m in the development company.
The first financial closing of the transaction remains subject to the completion of the new company and in particular the approval by Crown Estate Scotland of the transfer of the ownership of BW Ideol’s share in Buchan Offshore Wind to BW Ideol Projects Company.
Following first closing, BW Ideol will own 75.8% of BW Ideol Projects Company, representing a post-money valuation of BW Ideol Projects Company of around €74m.
ADEME Investissement will increase its holding over time as further sites are matured and financed.
BW Ideol will manage the development company through a service agreement.
BW Ideol retains full ownership of its other business activities and assets, including technology and related IP and know-how portfolio, the floater EPCI business line and the exclusivity with the Port of Ardersier in Scotland for a floater production line, the Floatgen demonstrator, and the ownership in the EolMed offshore floating wind farm pilot.
BW Ideol will also retain all its teams, including engineering, business development, project execution, supply chain, legal, innovation, finance.