Dong Energy has entered into an agreement to sell 50% of Borkum Riffgrund 2, a 450 MW German offshore wind farm project, to Global Infrastructure Partners (GIP). Borkum Riffgrund 2 is currently under construction and is expected to be fully commissioned in 2019.
The total sales price (consisting of the purchase price for GIP for its acquisition of 50% of the project and its commitment to fund 50% of the payments under a full-scope EPC agreement with Dong) amounts to approximately €1170 million payable over a period from 2017 until 2019.
GIP is also the 50% partner in another of Dong Energy’s offshore wind farms in Germany, Gode Wind 1. The transaction is subject to approval by the competition authorities and is expected to be completed before the end of 2017.
Dong Energy will construct the wind farm which is located approximately 59 km from Norddeich harbour and 34 km north of the island of Borkum in the North Sea. It will consist of 56 MHI Vestas V164-8.0MW wind turbines.under a full-scope EPC agreement. Dong Energy will also provide long-term operations and maintenance services from its O&M base in Norddeich and provide a route to market for the power production from GIP’s 50% share of Borkum Riffgrund 2.
Having entered into the agreement with GIP, Dong has increased its EBITDA guidance for 2017. Now, the company expects EBITDA of DKK 17-19bn. Expected gross investments remain unchanged at DKK 18-20bn.