AsiaEuropeOffshoreRenewables

Keppel buys into German offshore wind farm

Singapore’s Keppel Corporation and Keppel Infrastructure Trust (KIT) are buying a 25% stake in the Borkum Riffgrund 2 offshore wind farm in Germany. The deal worth €305m ($314.3m) will see the duo take a 50.01% stake in a special purpose vehicle, owned by Thailand’s Gulf International Holding, which currently holds 50% of the 465 MW wind farm in the German North Sea.

Borkum Riffgrund 2 has been fully operational since 2019, under the German EEG 2014 market premium mechanism, which Keppel said has an attractive feed-in-tariff and guaranteed floor price until 2038, providing strong cash flow visibility for the project. The project also holds a 20-year power purchase agreement and a 20-year operations and maintenance agreement until 2038 with Danish utility Ørsted, which owns the remaining 50% of the wind farm.

Including Keppel Corp and KIT’s investment in onshore wind farm assets across Sweden and Norway earlier this year, the latest investment will take the group’s total renewable energy portfolio to around 2.2 GW, including assets under development.

The transaction, which will see KIT take an effective 20.5% stake in the wind farm while Keppel Corp will hold a 4.5% interest, is expected to complete in the fourth quarter of 2022.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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