Deutsche Bucht Offshore Wind Project Reaches Financial Close

Northland Power’s EUR 1.3 billion Deutsche Bucht (DeBu) project has reached financial close, with all of the equity contributed to the project and all debt required for the project now fully committed by the project lenders.

Canada’s Northland owns 100% of the 252MW offshore wind farm which will be located in the German North Sea.

Approximately 75% of the project’s required costs will be provided from a EUR 988 million non-recourse construction and term loan and related loan facilities from ten international commercial lenders. The financing was oversubscribed, Northland said.

The lending group comprises Banco Santander, CIBC, Commerzbank, Helaba, KfW IPEX-Bank, National Bank of Canada, Natixis, Rabobank, Société Générale, and Sumitomo Mitsui Banking Corporation.

DeBu is Northland’s third offshore wind project. It is located 77km from Northland’s other German offshore wind project, Nordsee One.

DeBu is entitled to receive a fixed feed-in tariff subsidy for approximately 13 years under the German Renewable Energy Act (EEG), equating to approximately EUR184/MWh for 8 years and EUR149/MWh for the remainder. The majority of the project returns are expected to be earned during the 13 year feed-in-tariff period, with the remainder of the expected returns earned in the later years from the German wholesale electricity market.

The construction of DeBu is expected to begin shortly, with project completion expected by the end of 2019. Like Northland’s 600MW Gemini project, DeBu will use a two-contract construction strategy.

MHI Vestas Offshore Wind will supply and install the project’s 31 V164 8.0MW wind turbines. MHI Vestas will also maintain the wind turbines under a long-term service contract. DeBu will be connected to the 800MW BorWin Beta offshore converter station which has already been constructed.

 

Related news

List of related news articles

Posted: 6 months ago

Northwester 2 Reaches Financial Close

Northwester 2 has reached the official close of financial agreements with all key stakeholders and b...

Categories:
  • Business & Finance
Posted: 6 months ago
Posted: 6 months ago

Investors Showing Great Interest in Taiwanese OW Project

Funding for wpd’s Yunlin offshore wind project in Taiwan is close to completion and negotiations wit...

Categories:
  • Business & Finance
Posted: 6 months ago
Posted: 6 months ago

SSC Wind and Robur Combine Forces

SSC Wind and Robur have signed an agreement to join forces with an aim to expand their wind energy s...

Categories:
  • Business & Finance
Posted: 6 months ago
Posted: 6 months ago

Virginia Affirms Offshore Wind Ambitions

Virginia’s Governor Ralph Northam has released the 2018 Virginia Energy Plan which calls for t...

Categories:
  • Authorities
Posted: 6 months ago