Ørsted Expands it’s Investments in Europe, Acquires Onshore Wind Platform Ostwind

India’s First 3x Platform Wind Turbine Generators From ReNew Power

Reading Time: 3 minutes

Orsted has recently entered into an agreement with Ostwind, a German developer, owner, and operator of onshore wind and solar PV projects in Germany and France, to acquire a 100 % equity interest in OSTWIND Erneuerbare Energien GmbH, OSTWINDpark Rotmainquelle GmbH & Co. KG, OSTWIND International S.A.S., and OSTWIND Engineering S.A.S. from OSTWIND AG, a holding company located in Regensburg, Germany.

Based on an enterprise value of Ostwind of EUR 689 millions, the agreement will be concluded. This includes the financial liabilities of the companies and projects. There will be customary adjustments to the final price.

Ostwind’s acquisition marks Orsted’s entry to the large and expanding French and German onshore markets. It also significantly expands Orsted’s European onshore presence. Orsted’s onshore platform for renewables now includes the acquisitions of Brookfield Renewables’ Ireland and UK offshore wind platforms in 2021 and the recent entry to the Spanish onshore markets. Making Orsted cover US market and four of the largest growth markets in Europe at scale.

Ostwind is a company based in Regensburg, Germany and Strasbourg, France. It develops, builds, and manages onshore and solar PV projects. Ostwind has been involved in onshore wind development over 20 years. It boasts a record of more than 1GW of energised projects throughout the two countries. Ostwind currently has 152 MW under construction, 526 MW in advanced and about 1GW in the pipeline. A team of 115 people, including nine offices in France and Germany, leads the company.

ALSO READ  RWE Expands Wind Energy Footprint with Hesse Wind Farm in Germany

This transaction aligns with Orsted’s European expansion strategy. Orsted’s Onshore business has seen a significant increase in its revenues since it entered the onshore renewables market in 2018. Orsted has a portfolio of 4.8GW of onshore solar PV and wind projects under construction in the US and Europe. This is not counting Ostwind. Orsted is well on its way to achieving its global goal of 17.5GW onshore capacity by 2030.

Neil O’Donovan the CEO of Orsted Onshore, he stated “The acquisition Ostwind is a significant step in the strategic expansion of our Onshore business here in Europe. This company has a proven track record of building high-quality projects. It also has a strong cultural alignment with Orsted. They have a talented team and are active in the local community. These rare ingredients make Ostwind a solid platform from which to create value. Ostwind joining Orsted is a great opportunity for us to enter two key markets. One of these important markets is critical for our offshore business. I see significant synergies between our offshore and onshore businesses in Germany regarding offtake solutions for customers and combined renewable power capability for future renewable hydrogen production. We are looking forward to welcoming the Ostwind staff to Orsted.

ALSO READ  Qualitas Energy Strengthens Local Proximity with Wind Farm Communities by Opening New Locations in Cologne and Stuttgart

Fabien Kayser the CEO of Ostwind AG comments on the acquisition, “The entire energy industry is in the midst of a paradigm shift. Renewable energy is not a niche anymore. It is the only way to ensure that we have enough energy supply. This opens up major opportunities for renewable energy developers. We will need to think bigger and also look at the entire energy system. In the future, a PV or wind project’s development will need to be extended to include power storage and sale and other initiatives that are related to sector coupling. We are very pleased to have found a strong and experienced partner in Orsted who is working hard to achieve the goal of 100% renewable energy. Our employees in France and Germany, many of whom have been with Ostwind for many years, are especially appreciated. Without them, Ostwind wouldn’t be what it is today.

Ostwind’s current management team will continue to manage the business. It will eventually be integrated into Orsted’s Onshore business unit.

ALSO READ  Vestas Bags 46 MW Project in Austria from Windpark Engelhartstetten GmbH

The transaction will close subject to clearances for foreign investment and mergers.

This announcement does not alter Orsted’s prior EBITDA guidance for 2022. The purchase price will affect the expected investment level in 2022.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.