Germany – Greencoat Renewables has agreed to purchase 50% of the Borkum Riffgrund 1 offshore wind farm in Germany from Kirkbi (31.5%) and William Demant Invest (18.5%) for a total cash consideration of approximately €350 million.
The wind farm was developed and built by Ørsted, which is still a 50% shareholder.
Borkum Riffgrund 1 is a wind farm with 78 SGRE 4.0MW turbines that has been operational since 2015. It is located in Germany’s exclusive economic zone in the North Sea. Under a long-term contract, Ørsted will continue to provide operation, maintenance, and management services to the wind farm.
A fixed-price CfD is in place for the wind farm until September 2024. After that, until May 2035, the project is protected by a government-backed floor price for electricity sold. This gives you exposure to rising power prices as well as the growing European corporate PPA market.
The transaction is expected to close in Q2 2022, pending regulatory approval.