Masdar Secures Financing for Baltic Eagle Offshore Wind Farm Stake

March 18, 2024, by Adnan Memija

Abu Dhabi-based Masdar has achieved close on the financing of its 49 per cent shareholding in the 476 MW Baltic Eagle offshore wind farm in Germany.

According to Masdar, the total lending package amounted to EUR 488 million, with participation from ABN AMRO, Credit Agricole CIB, ING, Santander, and Siemens Bank.

The Baltic Eagle offshore wind farm is valued at approximately EUR 1.6 billion. The wind farm, which is scheduled to come into operation by the end of 2024, has a minimum regulated tariff of EUR 64.4/MWh for the first 20 years. In addition, 100 per cent of its production has already been sold via long-term charters.

This is Masdar’s largest-ever euro-denominated financing, as well as its first project with Iberdrola and its first in Germany, according to the company.

The Baltic Eagle project is currently under construction in the German Baltic Sea, northeast of the Rügen island off the Pomeranian coast.

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The offshore wind farm will comprise 50 Vestas 9.5 MW wind turbines, installed on monopile foundations, and will be linked to the German high-voltage grid via the Ostwind 2 grid connection.

The 476 MW project will supply approximately 475,000 households with renewable energy while reducing CO2 emissions by approximately 800,000 tonnes per year.

Masdar and Iberdrola signed a strategic agreement in July 2023 to co-invest in Baltic Eagle. At COP28, the two companies announced a further EUR 15 billion strategic partnership agreement to evaluate the joint development of offshore wind and green hydrogen projects in markets including Germany, the UK, and the US.

Masdar announced in December 2023 that it will invest in Iberdrola’s 1.4 GW East Anglia 3 offshore wind project in the UK.

In terms of other news coming from Masdar, the company recently completed its acquisition of a 49 per cent shareholding in the 3 GW Dogger Bank South offshore wind project in the UK.