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Canada's Northland buys 252MW Deutsche Bucht offshore wind

Canada’s Northland Power deepened its footprint in European offshore wind with a deal to buy the 252MW Deutsche Bucht project in German waters.

Northland will acquire the €1.2bn ($1.27bn) North Sea wind farm from Highland Group, the UK-based investor that has advanced the project to a near-construction stage.

Northland will sink about CA$400m ($298m) into Deutsche Bucht, with the remainder of the cost coming from “project financing and pre-completion revenues”.

The German wind farm will become the Canadian group’s third European offshore wind asset on completion of the deal, which is subject to certain conditions and due "over the coming months".

It recently finished construction of the 600MW Gemini offshore project in Dutch waters and is currently building the 332MW Nordsee One off Germany.

Northland’s offshore wind chief told Recharge in an interview last year that the company was eying further opportunities in European offshore wind, and could be competitive in tenders in the continent’s waters.

Northland Power to pass on North Carolina offshore auction

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Northland CEO John Brace said of the Deutsche Bucht deal : "We are pleased to add a third solid and robust offshore wind project to Northland's portfolio. Continued growth in the thriving offshore wind sector is an important component of Northland's strategic development approach.”

Deutsche Bucht will earn €184/MWh for the first eight years and €149/MWh for the remainder of a 13-year feed-in tariff, when Northland expects to earn “the majority” of its returns.

Deutsche Bucht is due to start construction soon after financial close, which Northland expects in the middle of this year. Completion is expected by the end of 2019, when all the wind farm’s V164 8MW MHI Vestas turbines are due to be in service.

MHI Vestas – named as preferred turbine supplier last September – is also in line to provide a 15-year full scope service package, with a unit of contractor Van Oord due to install the machines.

Northland’s deeper dive into the European offshore sector comes as it takes a cautious approach nearer to home.

The Canadian group said last week that it would not take up the option to compete in an upcoming auction in North Carolina, citing the absence of decisive factors in favour of the industry’s development off the Southeastern US.

 

However, it has signalled its intention to pursue opportunities in the US Northeast.

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