Ørsted has today entered into an agreement with the investment fund Glennmont Partners (Glennmont) to sell a 50% stake in Ørsted's German offshore wind farm Borkum Riffgrund 3.
The total sale price is expected to amount to approximately nine billion DKK. This price includes the 50% stake and a commitment to finance 50% of the costs under the EPC contract for the entire offshore wind farm.
The offshore wind farm, which Ørsted was awarded after bidding at zero euros per MWh in 2017 and 2018, is expected to be commissioned in 2025, subject to Ørsted making a final investment decision. This is expected to happen before the end of 2021.
This is the first time that Ørsted has signed an agreement for a partial divestiture to an institutional investor before a final investment decision is made. The transaction is expected to close in the fourth quarter of 2021 or the first quarter of 2022.
- We are pleased to be able to expand the collaboration with Glennmont, with whom we are already partners on Gode Wind 1, and which focuses its entire portfolio on investing in renewable energy infrastructure and thereby supporting the urgently needed transition from fossil-based energy sources to energy systems based on renewable energy sources, says Martin Neubert, Chief Commercial Officer and Deputy CEO of Ørsted.
Has entered into several power purchase agreements
Borkum Riffgrund 3, which will have a capacity of 900 MW, will consist of 11 MW turbines from Siemens Gamesa. Ørsted has so far entered into long-term fixed-price power purchase agreements on Borkum Riffgrund 3 for a total of 450 MW. Among other things, Amazon has secured an agreement for 250 MW.
Ørsted is working to enter into several power purchase agreements with a view to further optimizing the remaining commercial exposure in the first ten years of the project and in the subsequent years. Glennmont is very pleased about the agreement with Ørsted.
- This is a landmark investment for Glennmont. Since Glennmont was established more than ten years ago, it has been our goal to build long-term relationships with which we can collaborate on investments for our customers over the long term, and we are pleased to once again collaborate with Ørsted to invest in green transition, says Francesco Cacciabue, Group CFO and co-founder of Glennmont.
Ørsted announces that the sale does not change the current expectations for the financial year.
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