Gulf Energy Development Public Company has acquired a 50% interest in the 465MW Borkum Riffgrund 2 offshore wind farm in the German North Sea.
Through its subsidiary Gulf International Holding (GIH), Gulf Energy Development Public Company has acquired 100% shares of Borkum Riffgrund 2 Investor Holding (BKR2) through a share purchasing agreement with Global Infrastructure Partners (GIP).
BKR2 owns a 50% interest in Borkum Riffgrund 2. The contract came into effect on 3 July 2020.
The transaction is valued at €548-558m.
Orsted will continue to own the remaining 50% of the wind farm.
Borkum Riffgrund 2 receives a guaranteed feed-in tariff (FiT) backed by the German government for years 1-9.5 after commencement of commercial operations and will receive merchant price with guaranteed floor price for years 9.5-20.
GIH stated: “The company foresees the potential of the BKR2 project, which is consistent with the company’s strategy to expand its renewable energy business overseas, and the transaction will allow the company to enter into to a strategic partnership with the global market leader in offshore wind like Orsted, with 6.8GW of offshore wind installed globally and 3.1GW build-out planned towards 2022 across various countries such as UK, Germany, Denmark and the USA.”
The wind farm started commercial operation in April 2019.