Irish investment firm Greencoat Renewables has agreed to acquire 50% of the Borkum Riffgrund 1 offshore wind farm in Germany for a total cash consideration of approximately €350m ($386m).
Under the deal, which is the company’s first offshore transaction in the German market, Greencoat Renewables will take 31.5% and 18.5% stake from Danish investment firms Kirkbi and William Demant Invest, respectively. The wind farm was developed and constructed by Danish utility Ørsted, which remains a 50% shareholder. The transaction is expected to close in the second quarter of 2022.
Borkumm Riffgrund 1 is located in Germany’s exclusive economic zone in the North Sea and consists of 78 4 MW turbines that have been operational since 2015. Ørsted will continue to provide operation, maintenance and management services to the wind farm under a long-term contract.
The wind farm benefits from a fixed-price contract for difference until September 2024. After this period, the project benefits from a government-backed floor price for the electricity sold until May 2035.