Danish energy company Ørsted has signed an agreement to sell a 50% ownership stake in its 900MW German offshore wind farm, Borkum Riffgrund III, to Glennmont Partners.

The deal’s total value at its completion is estimated to be around kr9bn ($1.4bn).

This includes the ownership stake price and a commitment to funding 50% of the payments under the wind farm’s engineering, procurement and construction (EPC) contract.

The deal is expected to close in the fourth quarter of this year or by the first quarter of next year.

Ørsted chief commercial officer and deputy group CEO Martin Neubert said: “We’re delighted to extend our cooperation with Glennmont, who are already partners in Gode Wind I and are focusing their entire portfolio on renewable energy infrastructure investments, thereby supporting the urgently needed shift from fossil-based energy sources to energy systems based on renewable energy sources.”

Borkum Riffgrund III is being developed in the German North Sea near the Borkum Riffgrund I and II wind farms.

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It is expected to be commissioned in 2025 after Ørsted reaches a final investment decision on the project, which it intends to take by the end of this year.

Under the agreement, Ørsted will build the offshore wind facility as an EPC contractor and provide operations and maintenance services for a period of 20 years.

It has also agreed to provide a route to market for the power and green certificates generated by Borkum Riffgrund III.

In addition, Ørsted has designed an offtake agreement for 20 years, which provides a mix of fixed price and collared prices to Glennmont for a period of 15 years.

This will cover the majority of their volume share while leaving certain volumes exposed to market power prices.

Ørsted has so far executed long-term fixed-price corporate power purchase agreements on the Borkum Riffgrund III wind farm for 450MW of total capacity.