Dong Energy buys German offshore wind power projects

August 17, 2012 — Dong Energy acquired complete ownership interest in three offshore wind development projects in Germany, Gode Wind 1, 2, and 3, from PNE Wind AG. The three projects have a total capacity of up to 900 MW and are located in the German North Sea about 30 km northwest of the island of Norderney.

The purchase price for the three projects consists of an upfront payment of $70.3 million and additional deferred payments that are subject to the achievement of certain milestones such as an investment decision to construct the wind farms. The additional deferred payments amount to up to $122 million.

Gode Wind 1 and 2 both have a permit from German authorities that allows for the construction and operation of the projects. Certain changes to the permits are required though to use the total capacity in the projects. Gode Wind 1 and 2 have unconditional grid connection confirmation from the grid provider TenneT for a total of 584 MW.

Gode Wind 3 has applied for a permit to construct and operate, which is expected to be granted in 2013. Completion of the Gode Wind 3 transaction is conditional upon the relevant permits being obtained by the end of January 2014.

The acquisition of the Gode Wind 1, 2, and 3 projects is a step in Dong Energy's effort to gain a stronger position in the growing German offshore wind sector.

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