Dong Energy sheds 50% of Borkum Riffgrund 2 to GIP

Dong Energy A/S (CPH:DENERG) has agreed to sell a 50% stake in the 450-MW Borkum Riffgrund 2 offshore wind project in German waters to a fund managed by US-based Global Infrastructure Partners (GIP).

The Danish company announced on Monday it will offload the 50% interest to Global Infrastructure Partners III in a deal worth EUR 1.17 billion (USD 1.38bn). The parties have agreed for Dong Energy to provide an engineering, procurement and construction (EPC) contract and also deliver operations and maintenance (O&M) services for the plant.

The transaction is pending regulatory approval and is seen to be completed before end-2017.

The Borkum Riffgrund 2 will use 56 units of MHI Vestas’ V164-8.0 MW turbines. The wind farm is being constructed about 54 km off the Lower Saxony coast, near the 312-MW Borkum Riffgrund 1 complex that has been operational since 2015. Once completed, the Borkum Riffgrund 2 plant is expected to generate enough electricity for over 460,000 German homes each year. Commissioning is scheduled for 2019.

In 2015, Dong unloaded a 50% stake in the 330-MW Gode 1 wind park in German waters to private equity infrastructure investment fund GIP.

(EUR 1.0 = USD 1.180)

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