Canada pension fund offloads stake in two German offshore wind farms
Canada Pension Plan Investment Board (CPP Investments) is selling its 24.5% stake in two German offshore wind assets to a subsidiary of Canadian energy infrastructure company Enbridge.
The wind farms, known as Hohe See and Albatros are located approximately 100 km from the German North Sea coast and began operating in 2019 and 2020.
Together, the wind farms produce a combined 2.5m MWh of electricity, supplying energy to more than 700,000 households.
German energy group Energie Baden-Württemberg (EnBW) constructed the wind farms as one 639.45 MW joint project costing around €2.2bn. Enbridge backed the project by acquiring a 49.9% stake at the time. CPP Investments picked up its interests in the assets as development projects from Enbridge in 2018.
“Since our initial investment in these assets in 2018, the European offshore wind market has continued to mature and we’ve realised solid returns during our ownership,” said Bill Rogers, managing director, global head of sustainable energies at CPP Investments. “The renewable energy sector, and offshore wind specifically, remains an important investment strategy for us, and we will continue to seek opportunities in the sector that best fit the scale and flexibility of our capital.”
CPP Investments’ net proceeds from the sale are expected to be C$374m ($274m). The transaction is expected to be complete by the end of 2023.
