Ørsted takes FID on more than 1.1 GW of German offshore wind

The Borkum Riffgrund 2 offshore wind park. (Ørsted/Matthias Ibeler)

December 1 (Renewables Now) - Danish energy major Ørsted A/S (CPH:ORSTED) announced on Wednesday that it has taken the final investment decision (FID) on its offshore wind pair in the German North Sea -- Gode Wind 3 of 242 MW and Borkum Riffgrund 3 of 900 MW.

This milestone was reached thanks to the signing of corporate power purchase agreements (CPPAs) with a number of counterparties for a total portion of Borkum Riffgrund 3 amounting to 786 MW. More specifically, Covestro has agreed to buy the electricity generated by a 100-MW portion, Amazon has contracted 350 MW, REWE Group has signed a deal for 100 MW, BASF for 186 MW and Google will receive power from 50 MW.

As previously announced, London-based fund manager Glennmont Partners sealed an agreement in October to acquire a 50% stake in Borkum Riffgrund 3. This transaction should close na later than the first quarter of 2022.

Gode Wind 3 and Borkum Riffgrund 3 are expected to be commissioned in 2024 and 2025, respectively. Both projects will feature 11-MW Siemens Gamesa turbines.

While Gode Wind 3 will be getting a weighted average subsidy of EUR 81 (USD 91.85) per MWh, Borkum Riffgrund 3 is a zero-tariff project.

“With the decision to build Gode Wind 3 and Borkum Riffgrund 3, we’ll expand our German portfolio to six offshore wind farms and a total investment volume since 2012 of around EUR 7.5 billion,” said Jörg Kubitza, managing director for Ørsted in Germany. He believes that gigawatt-scale wind farms should be considered the norm from now on.

(EUR 1.0 = USD 1.134)

More stories to explore
Share this story
About the author
Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription