Germany – Ørsted has signed an agreement to divest 50% of the Gode Wind 3 offshore wind farm in Germany to funds managed by Glennmont Partners from Nuveen (Glennmont).
Glennmont is one of Europe’s largest fund managers, focused exclusively on investments in clean energy infrastructure. It is owned by Nuveen, a TIAA company and global asset manager with over USD 1.1 trillion in assets under management and a top 20 infrastructure manager globally.
Gode Wind 3 has a capacity of 253 MW and is currently under construction alongside the Borkum Riffgrund 3 offshore wind farm, where Ørsted and Glennmont are already 50/50 owners. Furthermore, Glennmont also co-owns Ørsted’s Gode Wind 1 offshore wind farm.
The value of the Gode Wind 3 transaction is EUR 473 million (approx. DKK 3.5 billion), which comprises the price for the acquisition of the 50 % ownership share of the offshore wind farm and a commitment to fund 50 % of the construction of Gode Wind 3. Gode Wind 3 is expected to enter into commercial operation in 2024.
Divestment
The divestment of 50% of Gode Wind 3 to Glennmont is a positive development for both companies. Ørsted is able to raise capital to fund its continued growth in the offshore wind market, while Glennmont gains exposure to a high-quality project with a strong track record.
The Gode Wind 3 project is also significant for the German Energiewende. The project is expected to generate enough electricity to power over 250,000 German homes. It will also help to reduce Germany’s reliance on fossil fuels and contribute to the country’s climate change goals.
