Keppel Group has acquired a 25% stake in an operating 465MW German offshore wind farm for €305m from Gulf Energy.

Keppel Corporation and its listed Keppel Infrastructure Trust (KIT) have acquired a 50.1% stake in a special purpose vehicle (SPV) that owns a 50% stake in the Borkum Riffgrund 2 wind farm (BKR2).

Post-acquisition Gulf International Holding will retain a 49.99% stake in the SPV. Danish energy firm Ørsted owns the remaining 50% stake in BKR2.

BKR2, located 59km off the coast of Lower Saxony, operates under the German EEG 2014 market premium mechanism, which has a feed-in tariff and guaranteed floor price till 2038. The project also holds a 20-year power purchase agreement and a 20-year operations and maintenance agreement, until 2038, with Ørsted.

Loh Chin Hua, CEO of Keppel Corporation, said: “We are pleased to strengthen our partnership with best-in-class partners such as Gulf and Ørsted through this transaction, and look forward to future collaboration opportunities.”

Jopy Chiang, CEO of Keppel Infrastructure Fund Management, said: “This transaction marks KIT’s first investment in the offshore wind sector, and our second investment in the European renewable energy market.

Chiang said the latest investment would almost triple KIT’s renewable energy portfolio to more than 700MW.

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