Keppel to buy 25% of Germany's Borkum Riffgrud 2 wind farm

The Borkum Riffgrund 2 offshore wind park. (Ørsted/Matthias Ibeler)

August 15 (Renewables Now) - Singaporean conglomerate Keppel Corp Ltd (SGX:BN4) and one of its units will pour EUR 305 million (USD 312.4m) in a deal that will see them collectively buy 25% of the 465-MW Borkum Riffgrund 2 offshore wind farm in the German North Sea.

Keppel Corp and Keppel Infrastructure Trust (KIT) will purchase the interest from Thai energy company Gulf International Holding Pte Ltd, a subsidiary of Gulf Energy Development PCL (BKK:GULF), the buyers said on Friday.

Under the deal, seen to be completed in the fourth quarter, the two entities will buy a combined 50.01% stake in the special purpose vehicle (SPV) that owns 50% of Borkum Riffrund 2, with Gulf International keeping a 49.99% shareholding in the particular entity. The investment will give KIT an effective stake of around 20.5% in the SPV, while its parent will own 4.5%.

Danish energy major Ørsted A/S (CPH:ORSTED) owns the remaining 50% of Borkum Riffgrund 2.

Located 59km off the coast of Lower Saxony, Borkum Riffgrund 2 was commissioned in 2019 and has since been selling electricity under a 20-year power purchase agreement (PPA) with Ørsted. The wind park receives a feed-in tariff (FiT) and guaranteed floor price under Germany’s EEG 2014 market premium mechanism until 2038. Ørsted is handling its operations and maintenance (O&M) under a contract running through 2038.

Keppel noted that the acquisition will lift the renewable energy capacity in its portfolio to roughly 2.2 GW.

(EUR 1.0 = USD 1.024)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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