Irish investor Greencoat Renewables has reached an agreement to acquire 50% of the Borkum Riffgrund 1 offshore wind farm in Germany from Kirkbi and William Demant Invest for around €350m.
Greencoat has acquired 31.5% from Kikbi and 18.5% from William Demant Invest.
The wind farm was developed and constructed by Orsted, which remains a 50% shareholder.
The transaction, Greencoat Renewables’ first in offshore wind, is subject to regulatory clearance and is expected to close in second quarter 2022.
Borkumm Riffgrund 1 is located in Germany’s exclusive economic zone in the North Sea and consists of 78 Siemens Gamesa 4.0MW turbines that have been operational since 2015.
Orsted will continue to provide operation, maintenance and management services to the wind farm under a long-term contract.
The wind farm benefits from a fixed-price CfD until September 2024. After this period, the project benefits from a government-backed floor price for the electricity sold until May 2035. This provides exposure to power price upside as well as the emerging European corporate PPA market opportunity.
Bertrand Gautier, Greencoat Renewables Investment Manager, said: “We are very pleased to enter the continental offshore wind market with a significant strategic stake in Borkum Riffgrund 1.
“This acquisition will contribute to Greencoat Renewables’ strategy to build a diversified portfolio of high-quality renewable electricity generation assets supported by strong contracted cash-flows and will support the Company’s further expansion into continental Europe.
“The acquisition further strengthens Greencoat Renewables’ partnership with Ørsted and positions us well for future acquisitions in the European offshore sector.
“We believe that offshore wind is key in allowing governments to reach their decarbonization objectives and we see a c.63GW investment opportunity across our selected jurisdictions by 2030.”