Ørsted takes FID on more than 1.1 GW of German offshore wind

Danish energy major Ørsted A/S (CPH:ORSTED) announced on Wednesday that it has taken the final investment decision (FID) on its offshore wind pair in the German North Sea -- Gode Wind 3 of 242 MW and Borkum Riffgrund 3 of 900 MW.

This milestone was reached thanks to the signing of corporate power purchase agreements (CPPAs) with a number of counterparties for a total portion of Borkum Riffgrund 3 amounting to 786 MW. More specifically, Covestro has agreed to buy the electricity generated by a 100-MW portion, Amazon has contracted 350 MW, REWE Group has signed a deal for 100 MW, BASF for 186 MW and Google will receive power from 50 MW.

As previously announced, London-based fund manager Glennmont Partners sealed an agreement in October to acquire a 50% stake in Borkum Riffgrund 3. This transaction should close na later than the first quarter of 2022.

Gode Wind 3 and Borkum Riffgrund 3 are expected to be commissioned in 2024 and 2025, respectively. Both projects will feature 11-MW Siemens Gamesa turbines.

While Gode Wind 3 will be getting a weighted average subsidy of EUR 81 (USD 91.85) per MWh, Borkum Riffgrund 3 is a zero-tariff project.

“With the decision to build Gode Wind 3 and Borkum Riffgrund 3, we’ll expand our German portfolio to six offshore wind farms and a total investment volume since 2012 of around EUR 7.5 billion,” said Jörg Kubitza, managing director for Ørsted in Germany. He believes that gigawatt-scale wind farms should be considered the norm from now on.

(EUR 1.0 = USD 1.134)

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