Vargronn to buy stake in 288-MW offshore wind farm in German debut

Norway-based offshore wind company Vargronn AS on Thursday announced that it has struck an agreement to acquire a 27.4% stake in the 288-MW Baltic 2 offshore wind farm located off the coast of Germany.

Vargronn will buy the stake from PGGM Infrastructure Fund, part of Dutch pension administrator PGGM N.V. group, for an undisclosed sum. The transaction will represent PGGM’s exit from the Baltic 2 wind farm, and Vargronn’s entry into the German market.

Once the deal closes, the ownership of Baltic 2 will be distributed as follows: German utility EnBW Energie Baden-Wuerttemberg AG (ETR:EBK) will own a 50.1% stake, Vargronn will have its 27.4%, leaving the remaining 22.5% indirect stake in the hands of German pension fund Arzteversorgung Westfalen-Lippe.

The Baltic 2 wind farm is situated in the German waters of the Baltic Sea, 32 km (19.9 miles) north of the island of Ruegen. Its 80 Siemens wind turbines started operation in September 2015, generating around 1,200 GWh of electricity annually.

EnBW will remain at the helm of operations and maintenance services.

“Vargronn is pleased to enter Germany, one of the world’s largest offshore wind markets. This transaction provides Vargronn with a significant platform for further growth and important operational insight in anew market.” said CEO Stephen Bull.

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