Equinor (NYSE:EQNR) agrees to sell a 25% stake in Germany’s Arkona offshore wind farm to funds advised by Credit Suisse Energy Infrastructure Partners for ~€500M ($547M).
EQNR will retain a 25% interest in the 60-turbine wind farm, which is operated and 50%-owned by RWE Renewables (OTCPK:RWEOY).
EQNR joined the project in 2016 after acquiring the stake from then-developer E.ON; it was EQNR’s first investment in German offshore wind.
Equinor has entered into an agreement with Credit Suisse Energy Infrastructure Partners (CSEIP) to sell a 25% ownership interest in the Arkona offshore wind farm for a total amount of approximately EUR 500 million.
Located 35 km off the northeast of the Rügen island in Germany, the Arkona offshore wind farm has been fully operational for almost a year. The 385 MW project features 60 Siemens Gamesa SWT-6.0-154 wind turbines which were installed in just three months; an industry record.
Currently Equinor holds a 50% interest in the wind farm. Following the transaction, Equinor will retain a 25% interest and RWE Renewables (following their takeover of E.ON Climate and Renewables) will remain the operator with a 50 % interest.
CSEIP is already one of the largest equity investors in wind power in the Nordics and is looking for long-term investment opportunities in infrastructure in the energy sector.
“We are delighted to invest alongside two of the most experienced offshore wind players in the sector, as well as expanding on our existing relationship with RWE Renewables. Arkona is our first investment in the offshore wind market, a sector we have identified as a key investment priority,” says Roland Dörig, managing partner of Credit Suisse Energy Infrastructure Partners.
“Arkona was delivered under budget and on time and has had strong operational performance since start-up. Now the project is de-risked and in the early phase of operations, and we are pleased to welcome Credit Suisse Energy Infrastructure Partners as new partner,” says Pål Eitrheim, executive vice president in New Energy Solutions in Equinor.
“Offshore wind assets with prudent operators such as RWE Renewables are attractive to institutional investors. We look forward to continuing our strong and successful partnership with them,” says Eitrheim.
The closing of the transaction is subject to approval by relevant competition authorities and is expected to take place later in Q4 2019 including customary purchase price adjustments.