EnBW takes FID on 960-MW offshore wind project, brings partners

Electric utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) has made the final investment decision (FID) on its 960-MW He Dreiht wind project in the German North Sea and agreed to sell a 49.9% stake in the scheme to a consortium led by Allianz Capital Partners.

The FID paves the way for the construction of the offshore wind farm which will be located some 85 km (52.82 mi) northwest of the Borkum island close to EnBW’s existing offshore wind farms Hohe See and Albatros, EnBW said on Thursday.

The consortium buying a 49.9% interest in the project includes AIP Management and Norges Bank in addition to Allianz Capital Partners. The latter will hold a 16.6% stake. Financial details of the deal, which is expected to close in the third quarter of 2023, were not disclosed.

He Dreiht, which will be EnBW's largest offshore wind farm, will require an investment of around EUR 2.4 billion (USD 2.58bn) and will be built without state subsidies. To fund the project, the utility has secured EUR 600 million in long-term funding from the European Investment Bank (EIB).

The wind park will feature 64 Vestas turbines each with a capacity of 15 MW. It is expected to be operational by the end of 2025 when it will be capable of producing green power enough to supply 1.1 million households. After the commissioning, EnBW will be responsible for the management and maintenance of the wind park.

EnBW has already sealed several power purchase agreements (PPA) with companies such as Fraport AG, Evonik Industries AG, Salzgitter AG and Robert Bosch GmbH, covering 335 MW of the project's total capacity. The utility noted that it is in talks with more potential off-takers.

(EUR 1 = USD 1.079)

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