wind farm

Denmark-based Dong Energy has agreed to sell 50% of the 330MW Gode Wind 1 offshore wind power project in Germany, for around €780m to Global Infrastructure Partners (GIP).

The firm will, however, continue construction works for the facility until its completion.

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Dong Energy will also be supporting the operation and maintenance of the power plant from its O&M base in Norddeich in Germany.

Under the terms of the agreement, the Danish firm will also be responsible for developing a route to market for transmission of the power generated at the facility.

GIP, which is an independent private equity infrastructure investment fund, had supported the transaction with €556m bond, which had been arranged by through a group of institutional investors.

"For the first time, a group of institutional investors has been lined up by an insurer to support the financing of a landmark offshore wind project."

Germany-based insurance group Talanx had served as the lead manager for the finance deal.

Talanx Asset Management chief investment officer Thomas Mann said: "For the first time, a group of institutional investors has been lined up by an insurer to support the financing of a landmark offshore wind project."

Talanx CFO Dr Immo Querner said: "In the long-term we could potentially invest up to €5bn in a broadly diversified range of alternative investments."

The transaction, which still awaits approval from competition authorities, is expected to be completed by the end of this year.

GIP chairman and managing partner Adebayo Ogunlesi said: "This transaction builds on GIP’s considerable experience in the renewable space and is in-line with our strategy of partnering with industry leaders."

The offshore project will be equipped with 55 wind turbines manufactured by Siemens.

Expected to be commissioned in 2016, the wind project will be able to supply clean energy for approximately 340,000 German households.

Image: Commissioning of Gode Wind 1 offshore wind project is scheduled for 2016. Photo: courtesy of DONG Energy A/S.