Ørsted has completed the 50% divestment of the 900 MW German offshore wind farm Borkum Riffgrund 3 to funds managed by Glennmont Partners.
The wind farm, which was awarded at EUR 0 per MWh in 2017 and 2018, is expected to be commissioned in 2025. The transaction was Ørsted’s first farm-down to an institutional investor to be signed prior to taking final investment decision on the project.
Glennmont, which is wholly owned by global asset manager Nuveen, is one of Europe’s largest fund managers exclusively investing in clean energy infrastructure. Glennmont has structured its investment into Borkum Riffgrund 3 to meet the needs of its institutional investors, including Nuveen’s parent, TIAA.
Ørsted will construct the wind farm under a full-scope EPC contract, perform operations and maintenance services for 20 years, and provide a route to market for the power and green certificates generated by Borkum Riffgrund 3. Ørsted has designed a 20-year offtake agreement that provides Glennmont with a combination of fixed price and collared prices for 15 years for the majority of their share of the volumes whilst also leaving certain volumes exposed to market power prices.
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