MADRID, 26 Jul. (EUROPA PRESS) –
Iberdrola has closed a strategic agreement with Masdar, a renewable energy group from the Emirate of Abu Dhabi, to sell it a minority stake of 49% in the capital of the company that owns the 476-megawatt (MW) Baltic Eagle offshore wind farm located in German waters of the Baltic Sea, reported the energy company.
In accordance with the terms of the transaction, the price to be paid at the closing of the transaction, which will be subject to possible customary adjustments in this type of transaction, will be approximately 375 million euros, which represents an implicit valuation of 100% of the park, once its construction is completed, of approximately 1,630 million euros in terms of equity value.
After the closing of the transaction, the buyer will have to contribute, in proportion to its participation in the capital of Baltic Eagle, to the construction costs of the park until its completion.
Iberdrola, which thus closes an operation with Masdar through which a partner enters its projects, as it has already done with others, will control and manage the assets, providing operation and maintenance services and other corporate services.
In recent months, Iberdrola has closed various long-term alliances to promote the decarbonisation of the economy, such as the signing of a strategic alliance with GIC for the expansion of transport networks in Brazil for 430 million euros.
It also agreed with Norges Bank Investment Management to co-invest in 1,265 MW of new renewable capacity in Spain or sold 60% of the business in Mexico, mostly gas combined cycles, for $6 billion.
Likewise, it continued advancing in its strategic alliance with Mapfre by incorporating 100 new MW through a joint venture, which already has 450 MW, or signed an alliance with Energy Infrastructure Partners to co-invest in the Wikinger offshore wind farm and strengthen its portfolio of offshore wind
This new agreement has been signed in Madrid by Ignacio Sánchez Galán, president of Iberdrola, and the CEO of Masdar, Mohamed Jameel Al Ramahi, as part of a broader commitment between two clean energy powers.
Both parties consider this to be “a transaction of strategic importance and a fundamental milestone that strengthens a partnership that will allow exploring more investment opportunities in renewable energy in various technologies and regions,” the utility said.
Baltic Eagle will have 50 wind turbines of 9.53 MW of unit power on monopiles, for an annual production of 1.9 terawatt hours (TWh), enough to sustainably meet the demand of 475,000 homes and avoid the emission of 800,000 tons of CO2 into the atmosphere every year.
This park, which is scheduled to come into operation at the end of 2024, has a minimum regulated rate of 64.6 euros per megawatt hour (MWh) for the first 20 years. In addition, it has already sold 100% of its production with long-term contracts.
His Excellency Sultan Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates (UAE), Chairman of Masdar and Chairman-designate of COP28, stressed that this “historic agreement between Masdar and Iberdrola will take advantage of Germany’s abundant wind energy in the Baltic Sea and bring electricity to nearly half a million homes while reducing emissions. “As the UAE prepares to host COP28, partnerships like this show how we can curb emissions without slowing down progress,” he added.
For his part, Galán pointed out that “offering the clean energy the world needs requires companies with vision and commitment that are willing to make large investments in new infrastructures.”
“Masdar brings all of this to the Baltic Eagle. This major project will help boost Europe’s green energy security, reduce emissions from homes and businesses, and support thousands of high-skill jobs. Build long-term partnerships with sustainable leaders like Masdar will help Iberdrola to continue leading the energy transition worldwide,” he added in this regard.
Iberdrola has 3,000 MW of offshore wind projects under construction or insured, with zero costs on the seabed thanks to the group’s pioneering position.
At the beginning of July this year, Iberdrola connected the Saint-Brieuc offshore wind farm, in France, to the electricity grid. It is the first large-scale offshore wind project to be delivered in the Brittany region.
In addition, the Vineyard Wind offshore wind project in the United States is scheduled to come online in the last quarter of 2023. The Baltic Eagle wind farm in Germany will be operational in 2024, and East Anglia 3 in the United Kingdom, and Windanker, in Germany, will begin production in 2026.
These projects will add to the current portfolio of 1,258 MW of operational offshore wind projects, including West of Duddon Sands in the Irish Sea, Wikinger in the German Baltic Sea and East Anglia One in the southern North Sea.
