Ørsted brings in Glennmont Partners as 50% shareholder Borkum Riffgrund

Wednesday, October 20 2021

Wind energy – ownership Borkum Riffgrund

Today, Ørsted has signed an agreement with Glennmont Partners, who will be acquiring a 50 % ownership share in Ørsted’s 900 MW German offshore wind farm Borkum Riffgrund 3.

The wind farm, which was awarded at EUR 0 per MWh in 2017 and 2018, is expected to be commissioned in 2025, subject to Ørsted’s final investment decision, which is expected by the end of 2021.

The transaction is Ørsted’s first farm-down to an institutional investor to be signed prior to taking final investment decision on the project.

The total transaction value, at completion of the transaction, is expected to amount to approximately DKK 9 billion which comprises 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.

Glennmont, who is wholly owned by the USD 1.3 trillion global asset manager Nuveen, is one of Europe’s largest fund managers exclusively investing in clean energy infrastructure. Glennmont has structured its investment into Borkum Riffgrund 3 to meet the needs of its institutional investors including Nuveen’s parent, TIAA.

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.