Thai utility Gulf Energy said it is planning a “strategic partnership” with global offshore wind leader Orsted as it joined the Danish group as new half-owner of the Borkum Riffgrund 2 project in German waters.

Gulf Energy has agreed to buy the 50% of the 465MW Borkum Riffgrund 2 previously owned by Global Infrastructure Partners (GIP) in a deal worth about €554m ($625m), it told investors in Thailand.

The Thai group said the move comes as it looks “to expand its renewable energy business overseas, and the transaction will allow the Company to enter into to a strategic partnership with the global market leader in offshore wind like Orsted”, adding that it foresees “further collaboration regarding wind energy”.

Gulf Energy operates 28 power plants in Thailand and abroad, mostly gas but also including solar and one offshore wind project in the development phase in Vietnam, according to its website.

Borkum Riffgrund 2 began operating in 2019 using MHI Vestas 8.3MW turbines. Orsted divested 50% of the project to GIP in 2017.

Gulf Energy noted that the project has a German government feed-in tariff for the first 9.5 years of operation and “will receive merchant price with guaranteed floor price for years 9.5-20, resulting in the long-term revenue stability of the project”.

Wind

Thailand's Gulf Energy hails Orsted partnership after German offshore wind deal