Typhoon Sells Remaining 5 Pct Interest in Gemini Offshore Wind Farm
Typhoon Offshore B.V. (“Typhoon Offshore”) announced it has entered into agreements with Northland Power Inc. (“Northland”) regarding the sale of Typhoon Offshore’s remaining 5% interest in Gemini, the 600MW offshore wind project currently in advanced development. This will top up Northland’s majority equity stake in Gemini to 60%.
Gemini is to be located 85 kilometres off the coast of the Netherlands in the North Sea. Combining favourable sea bed conditions with one of the strongest and most reliable wind resources in the world, the North Sea could produce enough energy to power Europe four times over. Once constructed, Gemini will be the largest wind farm in the North Sea.
Typhoon Offshore, which specializes in developing offshore wind parks, originally developed Gemini. Northland has taken a lead role in completing the remaining outstanding development activities since its announcement in August 2013, and intends to continue its active leadership role during construction and into operations.
Gemini will play an important role in helping the Government of the Netherlands achieve the targets mandated by the European Union’s Renewable Energy Directive, which calls for all Member States to reach a 20% share of energy from renewable sources by 2020. There is currently 5 GW of installed capacity in 58 operating offshore wind farms in European waters with another 5.5 GW in construction or advanced development. According to the European Wind Energy Association (EWEA), it is anticipated that there will be up to 150 GW of installed offshore wind power in the EU by 2030, meeting 14% of the EU’s electricity demand.
“Today’s announcement underlines our confidence in this project”, noted John Brace, CEO of Northland Power. “We are very pleased with the progress made to date, and look forward to working with our consortium partners to bring Gemini to fruition.”
Michael van der Heijden, Managing Director of Typhoon Offshore, commented: “With Northland taking up the remaining 5%, we have now completed raising all the equity for Project Gemini. And with the subordinated debt also fully subscribed, the Gemini team has now transitioned to execution mode in terms of reaching “financial close”, i.e. completing the arrangements with the banks to finance the project. Which in turn is another step in Typhoon Offshore’s 4GW business plan.“
Gemini is well advanced, and has received commitments for EUR 1,094 million in senior secured construction and term debt from 10 international commercial banks and Export Development Canada (EDC). In association with a EUR 500 million facility previously announced by the European Investment Bank and loans under negotiation with three European export credit agencies (Denmark’s EKF, Germany’s Euler Hermes and Belgium’s Delcredere|Ducroire), this completes the EUR 2 billion of senior debt required by Project Gemini.
Press release, January 30, 2014; Image: typhoonoffshore