Breaking News! GULF Takes German’s 465MW “Offshore Wind Farm,” Expecting EU Expansion!

Gulf Energy Development Public Company Limited (GULF) has announced that the company has entered into a Share Purchase Agreement to acquire 100% shares of Borkum Riffgrund 2 Investor Holding GmbH, Frankfurt am Main, Germany (BKR2 Holding), which owns a 50% interest in the Borkum Riffgrund 2 Offshore Wind Farm GmbH & Co. oHG (BKR2 Project).

 

On July 7, 2020, GULF announced that Gulf International Holding Pte. Ltd. (GIH), a wholly-owned subsidiary of GULF, entered into a Share Purchase Agreement with the group of Global Infrastructure Partners (GIP) to acquire 100% shares of Borkum Riffgrund 2 Investor Holding GmbH, Frankfurt am Main, Germany (BKR2 Holding), which owns a 50% interest in the Borkum Riffgrund 2 Offshore Wind Farm GmbH & Co. oHG (BKR2 Project) with a total investment value of approximately EUR 548-558 million, or approximately THB 19,219 – 19,570 million. The remaining 50% is held by the group of Ørsted A/S (“Ørsted”) (formerly known as DONG Energy). The contract came into effect on 3 July 2020.

 

The BKR2 Project is an offshore wind farm project with an installed capacity of 464.8 megawatts (export capacity of 450.0 megawatts) located in the German North Sea, northwest of Germany. The BKR2 Project has commenced commercial operation since April 2019, and has a Power Purchase Agreement (PPA) and an Operation & Maintenance Agreement (O&M Agreement) with Ørsted for a period of 20 years from the start of operations.

Moreover, the BKR2 Project receives a guaranteed Feed-in-Tariff (FiT) backed by the German government for years 1-9.5 after the commencement of commercial operations and will receive merchant price with a guaranteed floor price for years 9.5-20, resulting in the long-term revenue stability of the project.

 

GULF stated that the company foresees the potential of the BKR2 Project, which is consistent with GULF’s strategy 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 the offshore wind like Ørsted, with 6.8 gigawatts of offshore wind installed globally and 3.1 gigawatts build-out planned towards 2022 across various countries such as United Kingdom, Germany, Denmark and the USA.

Furthermore, Ørsted has over 25 years of world-leading experience in the operation of offshore wind business and is also the operator of the BKR2 Project, which will facilitate further collaboration regarding wind energy and thereby strengthening the company’s renewable energy businesses, increase the company’s credibility and competitiveness on a global scale.

Additionally, as BKR2 Project has already commenced commercial operation, the Company will be able to recognize income and profits immediately following the transfer of shares, which will significantly boost the company’s revenue and profit base.