Northland Power and RWE Renewables have established a joint venture to develop 1300MW of German North Sea offshore wind.
The partners have signed an agreement to pursue a cluster of three offshore wind projects, including the 433MW N-3.8 (Nordsee 2), 420MW N-3.5 (Nordsee 3) and the 480MW N-3.6 (Delta Nordsee) site.
The plan to set up the joint venture to develop the projects was first reported by subscriber-only reNEWS on 15 July last year.
The deal sees RWE take a larger slice of the Nordsee 2 and 3, up from the original 15%, while Northland will join RWE on the Delta Nordsee.
Northland and RWE hold step-in rights for N-3.8 (Nordsee 2) and N-3.5 (Nordsee 3), while RWE holds step-in rights for the N-3.6 (Delta Nordsee) lease.
In early November, the partners exercised their step-in rights for N-3.8 (Nordsee 2), allowing them to match the awarded bid in the auction and retain the lease. The auction for the remaining leases, will be held in 2023. For both sites the joint venture holds step-in rights.
Northland will hold a 49 percent interest in the new joint venture with RWE holding 51 percent. The projects will be developed and managed on a joint basis by both parties and are expected to achieve commercial operations between 2026 and 2028.
“The formation of the cluster aligns with our offshore wind ambitions and strategy of growing our position as a global leader in offshore wind,” said Mike Crawley, President and Chief Executive Officer of Northland.
“We are proud to enhance our partnership with RWE to form the cluster to further strengthen our position in the North Sea. This cluster will provide us with significant size and scale and allows us to support the decarbonization efforts in Germany.”
Sven Utermöhlen, CEO Wind Offshore, RWE Renewables, said: “Germany has set itself ambitious climate targets, thereby establishing a significant growth potential for renewable energies.
“Offshore wind power plays a central role in this and is indispensable for supporting the decarbonization of industry in particular. RWE is making its contribution to this and is significantly stepping up the pace here.”