Thai developer Gulf Energy has sold a 25% stake in the 465MW Borkum Riffgrund 2 offshore wind farm to a joint venture of Keppel Infrastructure Trust (KIT) and Keppel Corporation.
The investors have agreed to pay €305m for the stake, which will leave Gulf with a 25% shareholding in the German North Sea wind farm.
The remaining 50% is held by Orsted, the wind farm operator.
KIT and Keppel, which will take on 20.5% and 4.5% of the wind farm respectively, are due to close the transaction in the fourth quarter of 2022.
Borkum Riffgrund 2 is located 59km off the coast of Lower Saxony and has been operating since 2019.
The project is underpinned by a guaranteed feed-in tariff until 2038 and is also backed by a 20-year PPA and O&M agreement.
Jopy Chiang, CEO of KIFM, said, “This will mark KIT’s first investment in an offshore wind farm, and our second investment in the European renewable energy market, further reinforcing our strategy to grow our Energy Transition segment and almost tripling KIT’s renewable energy portfolio to over 700 MW.
“Underpinned by favourable tailwinds such as energy security, electrification and higher projected demand for green energy in the future, this investment underscores the global acceleration towards decarbonisation and net-zero. The Trust will continue to make inroads to capture more opportunities in the renewable energy sector, in support of our ESG target.”
Last month, KIT and Keppel Corporation partnered with KLP and MEAG to buy a 49% stake in a 258MW Norwegian and Swedish onshore wind portfolio held by. Fred Olsen. Renewables.
The portfolio comprised three onshore wind farms and the investors also agreed to a five-year exclusive right and obligation to co-invest in the developer’s 1.3GW pipeline of onshore wind in the UK and Sweden.
KIT and Keppel’s have paid €160m for a combined 33.3% stake in the fund.