Pursuant to the agreement to purchase that was announced in March of 2017, Northland Power announced that it has completed the acquisition of 100% of the shares of British Wind Energy, which owns the Deutsche Bucht offshore wind project, from Highland Group Holdings.
The 252-MW Deutsche Bucht project (DeBu) is Northland’s third offshore wind project. It will be located 95 km northwest of the island of Borkum in the German Exclusive Economic Zone.
The total estimated project cost is approximately EUR 1.3 billion. Northland expects to invest about $400 million of corporate funds, sourced from cash on hand and corporate liquidity. The balance of the project cost will be funded with non-recourse project finance debt and pre-completion revenues.
As of the time of the share acquisition, approximately EUR205 million of Northland’s funds have been irrevocably committed to DeBu, with the balance expected to be committed at financial close.
As previously announced, the project is investigating the development of two additional demonstration turbines utilizing suction bucket foundations. The final investment decision for these two turbines is subject to achieving certain development milestones. If built, they will contribute an additional 17 MW of capacity, and bring the total project cost to approximately EUR 1.4 billion.
Northland’s investment would increase to about $425 million, funded by cash and corporate debt, with the balance of incremental costs funded by additional project debt.
DeBu is currently in an advanced stage of development. The project remains subject to financial close, which is expected shortly, at which time all debt and equity required for the project are to be committed. Construction is expected to begin shortly after financial close, with project completion anticipated by the end of 2019.