Renewable-Energy-Industry.com

Business World of Renewable Energy

IWR Reuters News Center RTL 103 0347 1280 256

DONG Energy Divests 50 Percent of Offshore Wind Farm Borkum Riffgrund 2

Fredericia, Denmark - DONG Energy has entered into an agreement to sell 50 percent of Borkum Riffgrund 2, a 450 megawatt (MW) German offshore wind farm project, to Global Infrastructure Partners (GIP).

Borkum Riffgrund 2 is currently under construction and is expected to be fully commissioned in 2019. The total sales price (consisting of the purchase price for GIP for its acquisition of 50% of the project and its commitment to fund 50% of the payments under a full-scope EPC - engineering, procurement and construction - agreement with DONG Energy) amounts to approx. EUR 1,170 million. The price is payable over a period from 2017 until 2019.

GIP is also the 50 percent partner in another of DONG Energy’s offshore wind farms in Germany, Gode Wind 1. The transaction is subject to approval by the competition authorities and is expected to be completed before the end of 2017.

DONG Energy will construct the wind farm under a full-scope EPC agreement. DONG Energy will also provide long-term operations and maintenance services from its O&M base in Norddeich in Germany and provide a route to market for the power production from GIP’s 50 percent share of Borkum Riffgrund 2.

Having entered into the agreement with GIP to divest 50% of Borkum Riffgrund 2, DONG Energy increases its EBITDA guidance for 2017. Now, the company expects EBITDA of DKK 17-19bn. Expected gross investments remain unchanged at DKK 18-20bn.



Source: IWR Online, 16 Aug 2017