Ørsted secures planning approval for German offshore wind farm
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Ørsted secures planning approval for German offshore wind farm

22 Oct 2021 (Last Updated October 22nd, 2021 15:17)

Ørsted plans to make the final investment decision on the project by the end of this year.

Danish energy company Ørsted has obtained planning approval from the German Federal Maritime and Hydrographic Agency (BSH) for its Borkum Riffgrund III offshore wind farm complex.

The 900MW wind project will be built in Germany’s exclusive economic zone (EEZ) in the North Sea.

Ørsted will develop the facility alongside the 242MW Gode Wind III project, for which the company secured approval in April.

Borkum Riffgrund III will be equipped with 83 wind turbines supplied by Siemens Gamesa, each of which will have 11MW of capacity.

It will be located near the Borkum Riffgrund I and II wind parks.

The offshore wind facility is expected to come online in 2025, with Gode Wind III due to become operational in 2024.

Ørsted has also secured power purchase agreements for 450MW of the Borkum Riffgrund III project’s total capacity.

A final investment decision on the two projects is expected at the end of this year.

Once the two wind facilities begin operations, they will have the capacity to generate enough energy to power 1.2 million households in the region.

BSH issued the planning approval decision in line with Section 45 of the Wind Energy at Sea Act (WindSeeG) and Section 74 of the Administrative Procedure Act (VwVfG).

An environmental impact assessment for the project will need to be carried out in accordance with the Environmental Impact Assessment Act (UVPG).

Earlier this week, Ørsted signed an agreement to sell 50% of its stake in Borkum Riffgrund III to Glennmont Partners, a UK-based renewable energy fund manager.

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

This includes the ownership stake price and a commitment to funding 50% of the payments under the project’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.