Northland to Buy Majority Stake in North Sea Offshore Wind Farm

August 1, 2013 by  
Filed under Green Energy News

Northland Power Inc. (NPI), a Canadian
power-generation company, agreed to acquire a majority stake in
a C$3.8 billion ($3.7 billion) offshore wind energy project
planned for the North Sea.

Northland will acquire a 55 percent interest in Gemini, a
600-megawatt offshore wind farm to be built about 85 kilometers
(53 miles) off the coast of the Netherlands, the Toronto-based
company said today in a statement. It will provide about C$400
million in mezzanine and equity financing and C$32 million in
“credit support.”

Gemini will help the Dutch government achieve a European
Union mandate to provide 20 percent of its energy from renewable
resources by 2020 as the global market for offshore wind is
forecast to reach C$177 billion that year, according to the
statement.

As much as 150 gigawatts of offshore wind power is expected
to be installed in the EU by 2030, meeting about 14 percent of
the 28-member bloc’s electricity demand, according to the
European Wind Energy Association.

Northland plans to lead the remainder of the project’s
development in partnership with Typhoon Offshore BV, Siemens AG (SIE),
Van Oord Dredging Marine Contractors BV and HVC NV.
Construction will begin next year, and Gemini is expected to
enter operation in 2017.

Project Gemini’s total cost is projected to be C$3.8
billion and is expected to be financed with a combination of
non-recourse project debt, mezzanine financing and equity from
the group.

To contact the reporter on this story:
Andrew Herndon in San Francisco at
aherndon2@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net

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