Northland Power Inc., 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, 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.