Germany approves Ørsted's 900 MW BKR3 offshore wind project

22 Oct 2021

The Federal Maritime and Hydrographic Agency (BSH) has awarded a planning clearance for the 900 MW Borkum Riffgrund 3 (BKR3) offshore wind project. Earlier in October 2021, Ørsted signed an agreement with the European fund manager Glennmont Partners for the sale of a 50% ownership share in the project. The transaction is expected to amount to approximately DKK9bn (€1.2bn), including the price for the acquisition of a 50% stake and the commitment to fund 50% of the payments under the EPC contract for the entire wind project.

The subsidy-free project is expected to be commissioned in 2025, subject to Ørsted’s final investment decision that is expected by the end of 2021. As part of the deal, Ørsted will build the plant 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.   

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