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Keppel Corp, a Singaporean conglomerate, announced that it would spend 305m euros ($314.7 million). It also purchased a unit for a 50.01% share in a special-purpose vehicle (SPV), which owns Borkum Riffgrund 2, an offshore wind farm in Germany. This deal is a result of companies racing to increase exposure to renewable energy assets, which have increased in prominence in recent decades amid a global push for clean and sustainable energy.
Keppel stated that the transaction further accelerates the growth group’s exposure to renewable energy assets, and added that the company would have a completely renewable energy portfolio of approximately 2.2 gigawatts once the investment was complete.
Borkum Riffgrund 2 is off the coast of Lower Saxony, North Sea. It has an operating power of approximately 465 megawatts and is half-owned by Orsted (ORSTED.CO), a Danish renewables company. The entire SPV is owned by Gulf Energy Development, a Thai power producer.
Keppel stated that it would finance its share of the deal via capital contributions to the joint venture. However, its unit could pay for the investment using a combination of internal funds, debt, and external borrowings. The deal is expected close in the fourth quarter 2022.