Northland Power and RWE collaborate on an offshore wind cluster off the German coast
Northland Energy Inc. and RWE Renewables GmbH are co-developing a cluster of offshore wind projects in the German North Sea with a total gross capacity of 1.3 GW. The partners have signed an agreement to create a joint venture through which they plan to jointly develop, build and operate the group of three offshore wind projects. The cluster will include the 433 MW N-3.8 site (Nordsee 2), the 420 MW N-3.5 site (Nordsee 3) and the 480 MW N-3.6 site (Delta Nordsee).
In addition to its position on the N-3.8 (Nordsee 2) and N-3.5 (Nordsee 3) sites, Northland will also have access to the N-3.6 (Delta Nordsee) site, for which RWE holds 100% of the intervention rights. of the lease, while at the same time RWE will increase its position on sites N-3.8 (Nordsee 2) and N-3.5 (Nordsee 3). The size and scale of the cluster’s training should allow the partnership to unlock synergies. Specifically, achieving synergies in development and construction costs as well as operating costs should translate into improved returns for projects.
Northland will also benefit from enhanced off-take opportunities through the formation of the partnership and cluster to secure off-take agreements for the projects, once completed. The cluster will be in the immediate vicinity of the existing 332 MW Nordsee One wind power plant in which Northland and RWE are already partners.
“The formation of the cluster aligns with our offshore wind ambitions and strategy to strengthen our position as a global leader in offshore wind,” said Mike Crawley, President and CEO of Northland. “We are proud to enhance our partnership with RWE to form the cluster to further strengthen our position in the North Sea. This cluster will bring us significant size and scale and will allow us to support decarbonization efforts in Germany.
“Germany has set itself ambitious climate targets, establishing significant growth potential for renewables,” says Sven Utermöhlen, CEO of offshore wind for RWE Renewables. “Offshore wind power plays a central role and is essential to support the decarbonisation of industry in particular.
Northland and RWE hold intervention rights for N-3.8 (Nordsee 2) and N-3.5 (Nordsee 3), while RWE holds intervention rights for lease N-3.6 (Delta Nordsee). At the beginning of November, the partners exercised their intervention rights for the N-3.8 (Nordsee 2), allowing them to match the offer awarded during the auction and to keep the lease. The auction for the remaining leases will take place in 2023. For both sites, the joint venture holds intervention rights.
“RWE is helping to do this and is picking up the pace here considerably,” Utermöhlen adds. “This includes the collaborative delivery of the 1.3 GW offshore cluster with Northland Power, thanks to which we can achieve considerable synergies to be deployed in our new wind farms, while actively supporting the energy transition in our home market, Germany. ”
Northland will own a 49% stake in the new joint venture, with RWE holding 51%. The projects will be jointly developed and managed by the two parties and are expected to result in commercial operations between 2026 and 2028.