Greencoat Renewables snaps up 50pc stake in German offshore windfarm

4 Apr 2022

Image: © benoitgrasser/Stock.adobe.com

The €350m deal marks Greencoat Renewables’ first venture into the continental offshore market.

Dublin-headquartered energy company Greencoat Renewables has made a deal to acquire 50pc of German offshore windfarm Borkum Riffgrund 1.

The deal is worth around €350m and will be an all-cash transaction. It is subject to regulatory approval and is expected to close in the second quarter of this year.

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Last week, Greencoat Renewables revealed that it raised €281.5m in an oversubscribed placing to help it pursue a pipeline of near-term investment plans in Ireland and continental European markets.

The Borkum Riffgrund 1 windfarm was constructed and developed by Danish renewable energy company Ørsted. It has been operational since 2015 in Germany’s exclusive economic zone in the North Sea.

Greencoat Renewables will purchase a 31.5pc stake in the windfarm from Danish investors Kirkbi and take an additional 18.5pc from Danish investment company William Demant Invest.

Ørsted will retain its 50pc holding of the windfarm and will also continue to develop and maintain it. The windfarm has a capacity of 312MW, and will bring total installed capacity in Greencoat Renewables’ energy portfolio to 992MW, subject to the deal closing.

It consists of 78 turbines and is run through a fixed-price contract for difference that is due to expire in September 2024. When the contract has expired, the generated electricity will be sold at a government-backed floor price until May 2035.

The deal marks Greencoat Renewables’ first venture into the continental offshore wind market. However, the company has made several onshore acquisitions in the past number of months.

Last April, it acquired the Glencarbry windfarm in Co Tipperary, while in February of the same year it entered the Nordic market acquiring a Finnish windfarm for around €60m.

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Blathnaid O’Dea is Careers reporter at Silicon Republic

editorial@siliconrepublic.com