Ørsted sells 50% of the Gode Wind 3 offshore wind farm, strengthening its position as a major player in German renewable energy. The transaction was carried out with funds managed by Glennmont Partners, a European fund manager specializing in clean energy infrastructure. Glennmont is owned by Nuveen. It is a global asset management company with over $1.1 trillion in assets under management, and ranks among the top 20 infrastructure managers worldwide.
Gode Wind 3: An Overview
Gode Wind 3 is an offshore wind farm with an impressive capacity of 253 MW. Ørsted acquired it in two separate awards in 2017 and 2018, in the form of two separate projects. Its weighted average feed-in tariff of EUR 81 per megawatt-hour (MWh) is the park’s key asset. This attractive pricing confirms the potential profitability of offshore wind farms in the region.
A Value Transaction
The total value of the transaction is 473 million euros, equivalent to around 3.5 billion Danish kroner. This sum comprises two essential elements. On the one hand, it includes the cost of acquiring a 50% stake in the Gode Wind 3 offshore wind farm. Part of this sum will be used to finance the construction of the park. The construction phase is currently underway, and Gode Wind 3 is scheduled to start generating power for the commercial grid in 2024.
This transaction illustrates investors’ confidence in offshore wind farms in Germany. It also highlights the substantial economic potential of renewable energy projects, particularly in a market that is increasingly committed to a sustainable energy transition.
Reactions from the parties involved
The news of this transaction elicited positive reactions from the parties involved. Peter Obling, Head of Central Europe at Ørsted, commented: “We continue to see strong investor interest in offshore wind farms, and are delighted to welcome Glennmont back as co-owner of one of our German offshore wind farms. As Germany’s leading offshore wind energy developer, Ørsted is committed to playing a central role in Germany’s energy transition, and we will continue to work to support the green transformation in this market.”
Francesco Cacciabue, CFO and Partner at Nuveen’s Glennmont Partners, added: “This investment in German offshore wind energy with Ørsted is the third collaboration to strengthen our successful partnership. Furthermore, Ørsted is considered a leader in the offshore wind energy sector. This acquisition underlines Glennmont’s strategy. It involves investing in high-quality projects and developing long-term strategic partnerships with industry leaders.”
The transaction is expected to be finalized in the coming months, subject to regulatory approvals. This transaction is a significant milestone in Germany’s renewable energy sector, and illustrates the importance of long-term partnerships and investment in high-quality projects. It also strengthens Ørsted’s position as a key player in the German energy transition, which continues to gain in importance in the context of the global fight against climate change.
