BKR2 Holding is the owner of a 50% stake in the wind project’s holding company Borkum Riffgrund 2 offshore wind farm
The acquisition will enable Gulf Energy to immediately recognize revenue and profit. (Credit: Pixabay/Bente Jønsson)
Thailand-based energy company Gulf Energy Development has agreed to acquire a 50% stake in the 464.8MW Borkum Riffgrund 2 offshore wind farm with a total investment of about €548m and 558m ($618m-629.5m).
The project will be acquired through the firm’s wholly-owned subsidiary Gulf International Holding (GIH), which has signed a deal with Global Infrastructure Partners (GIP) to acquire BKR2 Holding.
BKR2 Holding is the owner of a 50% stake in the wind project’s holding company Borkum Riffgrund 2 offshore wind farm.
Gulf Energy said that Ørsted, a Danish multinational power company, will continue to own the remaining 50%.
Borkum Riffgrund 2 is selling its output under a 20-year contract
Gulf Energy 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 Ørsted, with 6.8 gigawatts of offshore wind installed globally and 3.1 gigawatts build-out planned towards 2022 across various countries such as United Kingdom, Germany, Denmark and the USA.”
Located in the German North Sea, northwest of Germany, Borkum Riffgrund 2 has commenced commercial operation in April last year.
It has been selling its ouput under a 20-year contract with power purchase agreement (PPA) and has an operation and maintenance (O&M) agreement with Ørsted.
The wind project will receive a guaranteed feed-in tariff (FiT) from the German government for years 1-9.5 following the start of commercial operations.
With the project currently in operations, the acquisition will enable Gulf Energy to immediately recognize revenue and profit.