Toronto-based Northland Power has signed an agreement with German utility firm RWE Innogy to acquire an 85% stake in three North Sea offshore wind projects.
Northland Power will acquire a majority stake in Nordsee One, Nordsee Two and Nordsee Three.
RWE Innogy will retain 15% equity in these three projects.
The 332MW Nordsee One project is presently in advanced development while Nordsee Two and Nordsee Three are in initial stages of development.
Nordsee Two and Nordsee Three, once completed, will have a total installed capacity of around 670MW.
These two projects will be developed over the next decade as offshore wind tariffs are extended and the grid infrastructure is made available.
These projects are located 40km north of Juist Island in German territorial waters, in an area of approximately 100km².
This region is characterised with shallow water and high wind speeds, making it ideal for offshore wind projects.
Nordsee One is estimated to cost €1.2bn and once operational, it is expected to generate more than 1,300GW hours of electricity annually from 54 wind turbines, which is enough to power 400,000 households in Germany.
This project is expected to be completed by the end of 2017.
Northland Power CEO John Brace said, "This partnership is consistent with Northland's focused, strategic approach to development and our commitment to delivering long term value to shareholders.
"Nordsee One is expected to be commercially operational by the end of 2017 and immediately thereafter should be highly accretive to free cash flow per share."
RWE Innogy CEO Hans Bünting said, "Today's agreement marks the first important milestone on the way to realise the Nordsee One offshore wind project.
"As part of RWE Innogy's capital light strategy going forward, we are going to share the capital required for offshore-projects through partnerships."
The financial details of the deal were not disclosed.
Image: Nordsee One is expected to generate over 1,300GW hours of electricity annually from 54 wind turbines. Photo: courtesy of RWE Innogy.