Ørsted Completes Borkum Riffgrund 3 Farm-Down

After signing an agreement with Glennmont Partners in October 2021, Ørsted has now completed the divestment of 50 per cent of the 900 MW Borkum Riffgrund 3 offshore wind farm in Germany.

This was the developer’s first farm-down to an institutional investor signed prior to taking a final investment decision, which the developer reached in December 2021.

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According to information released in October 2021, the total transaction value is approximately DKK 9 billion (around EUR 1.21 billion), which comprises the price for the acquisition of a 50 per cent ownership share and the commitment to fund 50 per cent of the payments under an EPC contract for the entire wind farm.

As part of the agreement, 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.

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Ørsted won the rights to develop Borkum Riffgrund 3 at the German auction held in 2018 by bidding EUR 0, making it the world’s first large-scale offshore wind farm to be awarded with a zero bid.

The 900 MW offshore wind farm will be built simultaneously with the 242 MW Gode Wind 3, which is expected to be commissioned in 2024 with Borkum Riffgrund 3 coming online the following year.

Located close to Ørsted’s existing offshore wind farms Borkum Riffgrund 1&2 and Gode Wind 1&2, both new projects will feature Siemens Gamesa 11 MW offshore wind turbines.

The developer has already signed corporate power purchase agreements (CPPAs) for Borkum Riffgrund 3 for a total of 786 MW with Covestro (100 MW), Amazon (350 MW), REWE Group (100 MW), BASF (186 MW), and Google (50 MW) to support the final investment decision by creating a large degree of revenue certainty for Borkum Riffgrund 3.

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