Canadian Company Enbridge has acquired a 50% stake in the €1.8bn Hohe See offshore wind project from German utility EnBW, which will retain the remaining interest.
The 497MW Hohe See project is planned to be constructed in the exclusive economic zone of the North Sea, around 90km north of Borkum and 100km northwest of Helgoland, covering an area of 42km².
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By GlobalDataEnbridge will act as co-developer, participating in the construction and operation of the project, which is expected to become operational in late 2019 and generate around two billion kilowatt hours (kWh) of electricity per year.
The company’s total investment in the project will be $1.7bn.
Enbridge's president and chief executive officer (CEO) Al Monaco said: "Offshore wind presents promising large-scale opportunities to increase Enbridge's presence in the renewable power business and is one of our key platforms in the growth of our enterprise going forward.
"This partnership also provides an option for further future investment in a planned 112-MW expansion of the offshore windfarm, providing Enbridge with an additional organic growth opportunity within the European offshore wind market."
The two companies plan to execute and participate in the project jointly and will also finance implementation of the offshore windfarm from construction through to commissioning.
EnBW will control and monitor all activities during the project’s further realisation, while Enbridge would support the project with its employees, who will be integrated into the EnBW project team.
Under the German Government's offshore wind incentive structure, generation is set to receive long-term fixed pricing for 20 years. All key regulatory approvals and fixed-price engineering, procurement, construction, and installation contracts for the project are already in place.
Construction phases have been initiated after releasing notice to proceed to the suppliers of the main infrastructure work.