Greencoat Renewables, the Dublin-listed wind and solar energy group, has announced an agreement to acquire 22.5 per cent of an offshore wind farm in Germany.
The company said the deal for the Butendiek farm from Marguerite Pantheon is subject to regulatory approval and is expected to close before the end of the first quarter of 2023.
The wind farm is located in Germany’s exclusive economic zone in the North Sea and consists of 80 Siemens Gamesa 3.6MW turbines that have been operational since 2015.
The farm benefits from fixed-price electricity prices until December 2023, after which a floor price for the electricity sold kicks in until December 2035, “providing the opportunity for exposure to the emerging European corporate power purchase agreement market”.
Greencoat Renewables, which floated on the market in 2017, separately announced the completion of its acquisition of the 25MW Taghart wind farm in Ireland as well as the 45MW Kokkoneva wind farm in Finland. Both assets were acquired under a forward sale commitment.
After the acquisition of Butendiek, Greencoat Renewables’ total borrowings will stand at 47 per cent of gross asset value.
A look ahead to 2023
Greencoat investment manager Bertrand Gautier said the deal would help the company diversify its European portfolio.
“We are pleased to make this acquisition which consolidates Greencoat Renewables’ market position in the German offshore wind sector,” he said.
“This acquisition will also contribute to the diversification of Greencoat Renewables’ European portfolio whilst bringing further strong contracted cash flows.
“The acquisition of Butendiek demonstrates Greencoat Renewables’ commitment to the European offshore wind sector, which plays an increasing role in providing cost-competitive, decarbonated and reliable electricity.
“We believe the sector will continue to offer attractive investment opportunities in the near future.”
Greencoat Renewables was set up and floated in 2017 by Greencoat Capital, the London-based renewable energy asset manager that acts as its investment manager.
