Northland Power said that the Deutsche Bucht Mono Bucket pilot demonstrator project in North Sea has reached financial close.
All required funds for the Demo project have been contributed by Northland and committed by the project lenders.
In May, the Federal Maritime and Hydrographic Agency of Germany (BSH) granted the Deutsche Bucht offshore wind project the permit required to erect two additional pilot wind turbines using Mono Bucket foundations.
Deutsche Bucht will be the first offshore wind farm worldwide to test this new type of foundation structure under commercial operating conditions.
As previously announced, the two turbines will contribute an additional 17 MW of capacity to the base 252 MW project for a total of 269 MW and bringing the total project cost to approximately €1.4 billion (CAD $2.0 billion) – up from €1.3 billion.
Northland’s corporate investment has increased from approximately $400 million to approximately $430 million, funded by cash on hand.
The balance of the Demo project cost will be funded with non-recourse project finance debt and pre-completion revenues. Production from the additional 17 MW Demo project will earn the same fixed feed‐in tariff subsidy for approximately 13 years under the German Renewable Energy Act (“EEG”) as the base project, equating to approximately €184/MWh for 8 years and €149/MWh for the remainder.
The Demo project is expected to be accretive to the base project since it will share the base project’s infrastructure.
Inclusive of the additional 17 MW from the Demo project, Northland owns 100% of the 269 MW offshore wind farm, which will be located in the German North Sea.
Northland Power CEO John Brace said: “Today’s announcement represents yet another first for Northland Power. The addition of the Demo turbines is not only innovative and accretive to the base project, but we are able to undertake this initiative with little additional risk since they will be integrated into the overall construction project.
“The innovative new mono bucket design could be of significant benefit to some of Northland’s future offshore wind farms. The learnings from this pilot could allow Northland to construct faster and lower costs for certain site conditions.”
The Deutsche Bucht project is currently under construction, with completion anticipated in the second half of 2019.
Source: Company Press Release