Northland Power Inc (TSE:NPI) said the 252-MW Deutsche Bucht offshore wind project in Germany, which it has agreed to acquire, may add two demonstration turbines with suction bucket foundations.
The final investment decision for the demo turbines, which will increase by 17 MW the power plant’s capacity, is subject to achieving development milestones. The demonstration part will boost the total project cost to about EUR 1.4 billion (USD 1.64bn), from EUR 1.3 billion without it.
Presenting its financial results on Wednesday, Northland said certain conditions for the acquisition of the project are anticipated to be completed “shortly”. Financial close and construction start are expected to follow and full commercial operations at the offshore wind farm are targeted for the end of 2019.
Northland Power is to invest in the project CAD 400 million (USD 314.6m/EUR 268m) in funds from cash on hand and corporate liquidity. That amount would rise to CAD 425 million with the two demonstration turbines. The balance of the cost will be covered by non-recourse project finance debt and pre-completion revenues.
MHI Vestas Offshore Wind was picked last year to supply and install the turbines at Deutsche Bucht.
The Canada-based company also holds a 60% stake in the 600-MW Gemini offshore wind farm in the Netherlands, which became fully operational at end-April. Northland also has an 85% equity interest in the 332-MW Nordsee One offshore wind project, which currently has 44 turbines installed. All 54 machines should be up and ready to run by the end of the year.
(CAD 1 = USD 0.79/EUR 0.67)
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