German energy company RWE has made a strategic move to strengthen its position in the German offshore market by acquiring sole ownership of the Nordseecluster, a 1.6 GW cluster of offshore wind farms in the German North Sea. The cluster, located north of Juist island, was initially co-developed with Canadian company Northland Power, which has now sold its 49 percent stake in the project to RWE.
The transaction between RWE and Northland Power was agreed upon at a purchase price of approximately EUR 35 million. Mike Crawley, President and CEO of Northland, explained that the evaluation of the Nordseecluster in the current environment led to higher expected costs for the project, which no longer met Northland's investment criteria. However, he reassured that the sale of the offshore wind portfolio would not impact Northland's growth trajectory, as the company has an extensive pipeline of renewable projects expected to contribute to significant capacity and adjusted EBITDA growth by 2030.
RWE's CEO of Offshore Wind, Sven Utermöhlen, expressed the company's ambition to expand its position as a global leader in offshore wind through the acquisition. As Germany's first gigawatt-scale offshore wind cluster, the Nordseecluster will provide RWE with substantial size and scale advantages in the industry.
The construction of the Nordseecluster will be carried out in two phases, namely Nordseecluster A and B. Currently in the permit application phase, Nordseecluster A consists of two wind farms (N-3.8 and N-3.7) with a combined capacity of 660 MW. Offshore works for Nordseecluster A are scheduled to commence in 2025, with commercial operations expected to start in early 2027.
The second phase, Nordseecluster B, will comprise two additional wind farms (N-3.6 and N-3.5), adding a further 900 MW of capacity by 2029. RWE plans to participate in the German government's offshore wind auctions this year and exercise its step-in rights for both sites of Nordseecluster B.
Vestas, a renowned wind turbine manufacturer, has been selected as the preferred supplier for the main components of all four sites. They will deliver 104 wind turbines, each with a capacity of 15 MW. The foundations, manufactured by Dajin Offshore, will be installed using Van Oord's state-of-the-art newbuild vessel, Boreas. Currently under construction at Yantai CIMC Raffles Shipyard in China, Boreas will facilitate the installation of the foundations in the Nordseecluster project.
RWE's acquisition of full ownership in the Nordseecluster marks a significant step towards the company's goal of expanding its offshore wind portfolio and solidifying its position as a leading player in the renewable energy sector. With the project's phased development and the utilization of reputable suppliers, RWE is poised to make a substantial contribution to Germany's renewable energy capacity and the global transition towards cleaner, more sustainable power generation.
