Aker Offshore Wind to reduce stake in floating platform maker Principle Power

Norwegian developer Aker Offshore Wind has agreed to reduce its share of floating platform manufacturer Principle Power, offloading a partial stake to fellow stakeholder EDP.

The transaction is based on a pre-existing option and is intended to rebalance the ownership structure and give Aker Offshore Wind and EDP equal equity stakes in Principle Power, an Aker spokeswoman explained. It is expected to be worth NOK 100 million (€9.9 million), she added.

Prior to the transaction, Principle Power, which is based in California, was owned by Aker Offshore Wind (47%), EDP (25.5%) and Tokyo Gas (27.5%).

Following the transaction – which is expected to close in the first quarter of 2022 – the ownership structure will be Aker Offshore Wind (36.25%), EDP (36.25%) and Tokyo Gas (27.5%).

Principle Power has designed a semi-submersible, three-column floating platform called WindFloat. It has been installed at a full-scale pilot project off Portugal and a commercial site off Scotland.

Shareholders Aker Offshore Wind and EDP – through its Ocean Winds offshore wind joint venture with Engie – plan to use it at future commercial-scale floating projects off the US and South Korea. 

Aker Offshore Wind CEO Philippe Kavafyan told investors and reporters: “There is no doubt now that floating offshore wind is on everyone’s radar and that is our speciality.

“Our global reach is expanding, not just organically, but through our partners, notably Principle Power.”

The Norwegian developer announced the planned partial divestment alongside its full-year results. Aker Offshore Wind reported a NOK 344 million (€34 million) loss in 2021, with its operating expenses far outweighing revenue as the company develops its offshore wind portfolio from a low base.