Northland Power Inc., a Canada-based independent power producer, has signed an agreement to acquire an 85% equity stake in three German offshore wind projects from RWE Innogy.
The deal includes majority stakes in Nordsee One, a 332 MW project currently in advanced development, as well as Nordsee Two and Nordsee Three, which are in early stages of development and total about 670 MW. The projects are located 40 km north of Juist Island in German territorial waters.
The Nordsee One project will continue to be developed, and the partners expect to reach a final investment decision and financial close in the first half of 2015, with in-water construction anticipated to begin in 2016. The total estimated cost of Nordsee One is EUR 1.2 billion, and the offshore wind farm is expected to be completed by the end of 2017.
Northland says Nordsee Two and Nordsee Three will be developed over the next decade as offshore wind tariffs are extended and the grid infrastructure is made available.
‘We are excited to announce this next stage of Northland's offshore wind development program," says Sean Durfy, president and chief development officer of Northland Power. "We are very pleased to have partnered with a world-class utility in RWE, who will provide expertise and manpower to support the development and construction of Nordsee One alongside Northland.’
Hans Bunting, CEO of RWE Innogy, adds, ‘Today's agreement marks the first important milestone on the way to realize the Nordsee One offshore wind project. As part of RWE Innogy's capital-light strategy going forward, we are going to share the capital required for offshore projects through partnerships. Nordsee One is another good example illustrating this business model, as it allows us to realize large-scale projects by bringing in strong partners.’