Canada Pension Plan Investment Board (CPP Investments) has announced its decision to sell its 24.5% stake in two prominent German offshore wind assets, namely Hohe See and Albatros. These wind farms are strategically located approximately 100 kilometers off the German North Sea coast and commenced operations in 2019 and 2020.
Together, these wind farms contribute to a substantial 2.5 million megawatt hours of electricity, effectively supplying clean energy to more than 700,000 households. This significant divestiture marks a pivotal moment for CPP Investments, as they part ways with these valuable renewable energy assets.
CPP Investments, through its wholly owned subsidiary CPPIB Renewables Europe, initially acquired its interests in these assets as development projects from Enbridge back in 2018. This acquisition was part of a broader renewable power partnership that extends to various regions in Europe and North America. Since then, the European offshore wind market has continued to mature, and CPP Investments has realized solid returns during its ownership.
Bill Rogers, Managing Director and Global Head of Sustainable Energies at CPP Investments, commented on the transaction, stating, “Since our initial investment in these assets in 2018, the European offshore wind market has continued to mature, and we've realized solid returns during our ownership. The renewable energy sector, and offshore wind specifically, remains an important investment strategy for us, and we will continue to seek opportunities in the sector that best fit the scale and flexibility of our capital.”
The terms of this divestiture were agreed upon with a wholly owned subsidiary of Enbridge, and the transaction is subject to customary conditions. It is anticipated that the sale will be finalized by the end of 2023. CPP Investments expects to receive net proceeds of C$374 million from this transaction, after accounting for certain costs and adjustments.
