Greencoat acquires 50% stake in German offshore windfarm

The Borkum Riffgrund 1 offshore windfarm in Germany. It has 78 turbines each generating up to 4GW.

Windfarm operator Greencoat Renewables is to invest €350m in a German offshore windfarm acquiring a 50% stake alongside the developer Orsted.

Borkumm Riffgrund 1 is located in Germany’s economic zone in the North Sea and consists of 78 turbines each generating up to 4GW that have been operational since 2015. Orsted will continue to provide operation, maintenance and management services to the windfarm under a long-term contract.

The windfarm will benefit from a fixed-price until September 2024. After this period, the project benefits from a government-backed floor price for the electricity sold until May 2035.

The transaction is subject to regulatory clearance and is expected to close within three months.

Greencoat's investment manager Bertrand Gautier said the acquisition strengthens its partnership with Orsted and positions it for future acquisitions and builds a portfolio of renewable electricity generation assets that supports the company’s further expansion into continental Europe.

"We believe that offshore wind is key in allowing governments to reach their decarbonisation objectives and we see a 63GW investment opportunity across our selected jurisdictions by 2030,” he said.