Following the construction and investment decision taken by EnBW’s Supervisory Board at the end of 2016, the co-investor for the 497MW offshore wind farm has now been confirmed and the final investment decision for the project has been reached.
Namely, Enbridge has acquired a 49.9% stake in EnBW Hohe See from EnBW, who will retain the remaining interest. The Canadian energy company’s total investment in the project will amount to EUR 1.07 billion.
EnBW CEO Frank Mastiaux said: “With an investment volume of around 1.8 billion euro, we have not only taken one of the largest investment decisions in the history of our company but despite the currently difficult economic conditions, we are continuing to rigorously invest in the implementation of our strategy and through EnBW Hohe See we are developing another cornerstone for safeguarding the future of EnBW.”
As co-developer, Enbridge will participate in the construction and operation of the project, which is expected to be strongly accretive in the first full year of operation.
The company’s investment in 2017 will be EUR 440 million with the remaining capital to be invested through to the project’s in-service date in 2019.
Equity financing needs for the full EUR 1.07 billion investment have been pre-funded through financing actions completed in the fourth quarter of 2016, specifically through the preferred share and hybrid instrument offerings, Enbridge said.
“This partnership also provides an option for further future investment in a planned 112-MW expansion of the offshore wind farm, providing Enbridge with an additional organic growth opportunity within the European offshore wind market,” Enbridge President and CEO Al Monaco said.
Enbridge has several projects under development in the European offshore wind market, including a 24.9 percent stake in the 400MW Rampion wind project in the UK, and a 50 percent interest in French offshore wind development company Éolien Maritime France SAS, which is pursuing three large-scale offshore wind that would produce a combined 1,428MW of power and are subject to final investment decision.