Keppel to invest $445.3m in German offshore wind farm

The investment will be split between Keppel and its trust unit.

Keppel Corporation Limited and Keppel Infrastructure Trust will jointly invest in a 465MW German offshore wind farm for $445.3m.

The investment will be used to acquire a 50.01% stake in a special purpose vehicle (SPV) that holds 50% of the Borkum Riffgrund 2 (BKR2), an offshore wind farm in Germany

The SPV is currently wholly owned by Gulf International Holding Pte. Ltd., a subsidiary of Gulf Energy Development Public Company Limited (Gulf), one of Thailand’s largest private power producers. Post-acquisition, Gulf will retain a 49.99% stake in the SPV. The remaining 50% stake is owned by Danish-multinational power company Ørsted.

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KIT and Keppel will hold an effective stake of approximately 20.5% and 4.5% in BKR2 respectively.

Operating since 2019, BKR2 has an operating capacity of approximately 465 MW and is located 59km off the coast of Lower Saxony in the North Sea, Germany, which is an area with high wind availability as reflected in the high average historical capacity factors of more than 40%. The region is next to the Wadden Sea, an UNESCO World Heritage site. Hence, it is unlikely for wind farms to be built at the Wadden Sea, mitigating potential reduction in wind availability to BKR2.

The investment is expected to be completed in the fourth quarter of 2022.