DONG Energy has agreed to sell 50% of Borkum Riffgrund 2, a 450 MW German offshore wind farm project, to Global Infrastructure Partners (GIP) in a deal worth nearly US$1.4 billion.
Borkum Riffgrund 2 jacket sailaway. Image from DONG.
Borkum Riffgrund 2 is currently under construction and is expected to be fully commissioned in 2019.
The total sales price, consisting of the purchase price for GIP for its acquisition of 50% of the project and its commitment to fund 50% of the payments under a full-scope engineering, procurement and construction (EPC) agreement with DONG Energy, amounts to $1.37 billion (EUR 1.17 billion). The price is payable over a period from 2017 until 2019.
GIP is also the 50% partner in another of DONG Energy’s offshore wind farms in Germany, Gode Wind 1.
The transaction is subject to approval by the competition authorities and is expected to be completed before the end of 2017.
“We’re pleased to be able to build on the partnership we established with GIP in relation to Gode Wind 1 in 2015. That partnership has been a success for all parties, and we’re committed to ensuring a similar success in relation to Borkum Riffgrund 2,” said Samuel Leupold, executive VP and CEO of Wind Power at DONG Energy.
DONG Energy will construct the wind farm under a full-scope EPC agreement. DONG Energy will also provide long-term operations and maintenance services from its O&M base in Norddeich and provide a route to market for the power production from GIP’s 50% share of Borkum Riffgrund 2.
Having entered into the agreement with GIP to divest 50% of Borkum Riffgrund 2, DONG Energy increases its EBITDA guidance for 2017.
The Borkum Riffgrund 2 wind farm will be approximately 59km from Norddeich harbor and 34km north of the island of Borkum. It will consist of 56 MHI Vestas V164-8.0 MW wind turbines.The wind farm will have a capacity of 450 MW and will produce enough electricity to power more than 460,000 German households every year.