Nordsee One Reaches Financial Close

The €1.2 billion Nordsee One project has reached financial close announced Canadian-German duo today.

Northland, who owns 85%, and RWE Innogy, who owns the remaining 15% of 332MW project, said the equity is contributed to the project and all debt required for the project is fully committed.

Approximately 70% of the project’s required costs will be provided from an €840 million non-recourse secured construction and term loan and related loan facilities from ten international commercial lenders.

The lending group includes ABN AMRO, Bank of Montreal, Commerzbank, Export Development Canada, Helaba, KfW IPEX, National Bank of Canada, Natixis, Rabobank and The Bank of Tokyo-Mitsubishi.

“We are very pleased to announce this important milestone,” noted John Brace, CEO of Northland. “The financing for Nordsee One was completed quickly for a project of this size, thanks to the skill and diligence of the project’s financiers and advisors, and the overall quality of the project. Today’s announcement underscores Northland’s ability to deliver sustained growth and strong results, and our commitment to becoming a leader in the rapidly growing offshore wind industry.”

Nordsee One is entitled to a feed-in tariff subsidy under the German Renewable Energy Act. A substantial portion of the project returns are earned during the feed-in-tariff period, while the remainder of the planned returns are expected from the robust and mature German wholesale electricity market.

Senvion SE, a German based company and one of the largest turbine suppliers to the offshore wind industry, will supply, install, and maintain the 54 wind turbine generators for the project, each with a 6.15 MW capacity. The balance of plant will be engineered and constructed by four experienced offshore wind contractors.