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Dong to divest stake in German offshore wind project to GIP for €1.17bn

EBR Staff Writer Published 08 August 2017

Dong Energy has agreed to divest 50% of its stake in the 450MW Borkum Riffgrund 2 Offshore Wind Farm project to Global Infrastructure Partners (GIP) for a sum of nearly €1.17bn.

The acquisition from the Danish energy firm will be done by a fund managed by GIP named as Global Infrastructure Partners III (GIP III).

Following the acquisition, the German offshore wind project will be built by the 50/50 partnership of Dong Energy and GIP.

The Borkum Riffgrund 2 transaction marks the second joint venture between the Danish firm and GIP after the global infrastructure investor’s acquisition of a stake of 50% in the 330MW Gode Wind 1 Offshore Wind Farm for €780m in 2015.

Dong Energy executive vice president and wind power CEO Samuel Leupold said: “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.”

Like the Borkum Riffgrund 2, the Gode Wind 1 project is also located in the German North Sea.

GIP chairman and managing partner Adebayo Ogunlesi said: “This second transaction with DONG Energy continues and strengthens our successful partnership.

“DONG is a recognized leader in the energy sector and the pioneer in the development and operation of offshore wind farms, and this acquisition underscores GIP’s strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders.”

The Borkum Riffgrund 2 offshore wind farm project, which is expected to be fully commissioned in 2019, will generate enough electricity to meet the annual power consumption needs of over 460,000 German households.

It will be built nearly 34km north of the island of Borkum and about 59km from Norddeich harbor. Dong Energy plans to operate the offshore wind farm from its Norddeich base.

In January, Dong Energy made a deal with MHI Vestas Offshore Wind to have 56 of the latter’s V164-8.0MW wind turbines installed for the Borkum Riffgrund 2 project.

Subject to approval from relevant authorities, the transaction is anticipated to be closed by the year end.


Image: The offshore substation jacket for Borkum Riffgrund 2 leaving the Schiedam harbour in the Netherlands. Photo: courtesy of DONG Energy A/S.