Ørsted adding 1.7 GW to onshore platform via Ostwind acquisition
Wind farm. Source: Ørsted A/S.
Danish offshore wind developer Ørsted (CPH:ORSTED) has clinched a deal to acquire Ostwind AG, which develops and builds onshore wind and solar farms in Germany and France and owns roughly 1.7 GW of assets.
The deal, for which Ørsted said in June it was holding negotiations, gives the target an enterprise valuation of EUR 689 million (USD 705.3m) and includes the assumption of its financial liabilities. Ørsted announced the price on Friday and noted it will be subject to customary adjustments.
Under the arrangement, Ørsted will take full ownership of Ostwind Erneuerbare Energien GmbH, Ostwindpark Rotmainquelle GmbH & Co KG, Ostwind International SAS and Ostwind Engineering SAS.
Ostwind, with headquarters in Germany and France, has been developing wind projects since 1992 and has topped 1 GW of completed schemes in its two home markets. At present, its portfolio includes 152 MW of plants in operation and under construction, some 526 MW of projects in advanced development, as well as an additional development pipeline totalling 1 GW, mostly wind. The company has nine offices in Germany and France and 115 employees.
The acquisition is aligned with Ørsted’s strategy to expand its presence across Europe and backs its goal to lift its global onshore capacity to 17.5 GW by 2030 from 4.8 GW now, excluding Ostwind’s portfolio.
“I expect significant synergies between our onshore and offshore businesses in Germany, both regarding offtake solutions for our customers and combined renewable power capacity for future renewable hydrogen production [..],” said Neil O’Donovan, CEO of Ørsted Onshore.
The deal is pending regulatory clearance and is seen to be finalised in the second half of this year. After its closing, Ostwind will be gradually integrated into Ørsted’s Onshore business. No changes will be made to its management team, Ørsted said.
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.