The deal comes as companies race to increase their exposure to renewable energy assets which have risen in prominence in recent years amid a global push towards clean and sustainable energy.
Singaporean conglomerateKeppel Corpsaid on Friday it would spend 305 million euros ($314.7 million) along with a unit for a 50.01 per cent stake in a special purpose vehicle (SPV) that owns 50 per cent of Borkum Riffgrund 2, an offshore wind farm in Germany.
The deal comes as companies race to increase their exposure to renewable energy assets which have risen in prominence in recent years amid a global push towards clean and sustainable energy.
“The transaction further accelerates the growth of the group’s exposure in renewable energy assets,” Keppel said in a statement, adding that it would have a total renewable energy portfolio of about 2.2 gigawatts after the investment was completed.
Borkum Riffgrund 2, which is located off the coast ofLower Saxonyin theNorth Seaand has an operating capacity of about 465 megawatts, is 50 per cent owned by Danish renewables firmOrsted. Thai power producerGulf Energy Developmentowns the entire SPV.
Keppel said it would fund its share of the deal through capital contributions to the joint venture, while its unit may pay for the investment with a combination of internal funds, equity, debt and external borrowings.
The deal is expected to be completed in the fourth quarter of 2022.
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