Ørsted enters deal with Glennmont Partners for the sale of 50% interest in Borkum Riffgrund 3 Offshore Wind Farm

Ørsted has signed an agreement with Glennmont Partners for the sale of a 50% share in Ørsted’s 900 MW Borkum Riffgrund 3 offshore wind farm project in the North Sea, Germany. Completion of the transaction is expected in the fourth quarter of 2021 or early 2022.

The wind farm is expected to be commissioned in 2025, subject to Ørsted’s final investment decision planned for the end of 2021. Ørsted has signed long-term fixed-price corporate power purchase agreements on Borkum Riffgrund 3 for a total of 450 MW. The company continues to work on an advanced pipeline of additional PPAs with the aim to further optimize the remaining merchant exposure in the first 10 years and in the later years of the project.

The total transaction value is expected to amount to approximately DKK9 billion (US$1.41 billion), comprising the price for the acquisition of a 50% ownership share and the commitment to fund 50% of the payments under the 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. Ørsted has designed a 20-year offtake agreement that provides Glennmont with a combination of fixed price and collared prices for 15 years for the majority of their share of the volumes whilst also leaving certain volumes exposed to market power prices.