In a pivotal deal within the renewable energy sector, Ørsted announces the divestment of a 50% stake in the Gode Wind 3 Offshore Wind Farm, located in Germany, to funds overseen by Glennmont Partners, a subsidiary of the renowned asset management firm Nuveen.

A Deep Dive into the Deal’s Dynamics

Respected as one of Europe’s leading fund managers concentrating solely on clean energy infrastructure investments, Glennmont Partners operates under the Nuveen umbrella. Nuveen, a TIAA entity, stands tall as a global asset manager boasting an impressive USD 1.1 trillion in managed assets and securing a position among the top 20 infrastructure managers worldwide.

Elucidating on Gode Wind 3’s profile, the wind farm boasts a 253 MW capacity, having secured its award to Ørsted in separate events during 2017 and 2018. It operates under a weighted average feed-in tariff pegged at EUR 81 per MWh. Interestingly, the construction of Gode Wind 3 is currently underway, situated alongside the Borkum Riffgrund 3 Offshore Wind Farm. It’s worth noting that both Ørsted and Glennmont jointly own Borkum Riffgrund 3, with a 50/50 ownership division. In addition to this, Glennmont also shares ownership of Ørsted’s Gode Wind 1 Offshore Wind Farm.

Valuation and Future Projections

The entire Gode Wind 3 deal is pegged at EUR 473 million (equivalent to about DKK 3.5 billion). This valuation encompasses the price for acquiring the 50% ownership stake and a pledge to fund half of Gode Wind 3’s construction expenses. Industry insiders anticipate Gode Wind 3 to commence its commercial operations by 2024.

Stakeholder Insights on the Deal

Peter Obling, who steers Central Europe operations at Ørsted, reflected on the deal stating: “We continue to see strong investor interest for offshore wind farms, and we’re very pleased to once again welcome Glennmont as a co-owner of one of our German offshore wind farms. As the leading developer of offshore wind in Germany, Ørsted is committed to being a central part of the German Energiewende, and we’ll continue to work to support the green transformation in this strategic market.”

Francesco Cacciabue, the CFO and Partner at Glennmont Partners, added his perspective: “This third investment in German offshore wind with Ørsted continues and strengthens our successful partnership. Ørsted is a recognized leader in the offshore wind sector, and this acquisition underscores Glennmont’s strategy of investing in superior quality projects and developing long-term strategic partnerships with industry leaders.”

The culmination of this transaction is projected for the forthcoming months, contingent upon obtaining requisite regulatory approvals.

  Borkum Riffgrund 3, clean energy infrastructure, Energiewende, feed-in tariff, Francesco Cacciabue, Germany, Glennmont Partners, Gode Wind 3, Nuveen, offshore wind farm, Orsted, Peter Obling