Dong offloads Gode 2 stake
Pension groups pay €600m for half of 252MW German wind farm
Dong Energy has sold 50% of its 252MW Gode Wind 2 project to a consortium of Danish pension funds.
The company will offload the stake in the German North Sea project for €600m to PKA (24.75%), Industriens Pension (10.5%), Laerernes Pension (8.75%) and Laegernes Pensionskasse (6%).
Cash will be paid from the period 2014 to 2016. Construction at Gode 2 is expected to kick off in 2015 with full commissioning planned for 2016. Sister project Gode 1 (330MW) will also go live in 2016.
Dong will provide operation and maintenance services to Gode Wind 2 from its O&M base in Norddeich on behalf of all owners. Dong will also provide a route to market for the power production of Gode Wind 2.
Dong vice president Samuel Leupold said: "We are very pleased to enter into an offshore wind partnership with PKA for the second time and at the same time welcome the other Danish pension funds, which we have not partnered with before, as co-owners to Gode Wind 2."
He said it is "integral to Dong Energy’s business model that institutional investors consider a partnership with Dong Energy an attractive investment opportunity.
Leupold added that by 2020 Dong is looking to triple its installed capacity from today's 2.2GW and the pensions deal "enables us to free up capital to continue our investment programme and thereby assists us in reaching this target”.
PKA chief executive Peter Damgaard Jensen said: "Gode Wind 2 is the fourth offshore wind farm that PKA invests in and the four wind farms will provide power to more than 1.8 million households.
"PKA will continue investing in such projects, since they are in line with the wish for a sustainable return and our members' demand to make a positive impact on the climate.”
The transaction is subject to approval by the competition authorities and is expected to be completed in the second half of 2014.
Image: Dong's Anholt wind farm off Denmark (Siemens)