German Offshore Windfarm gets €450 Million Windfall

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - One of the largest offshore windfarms planned for the German North Sea will get underway early next year thanks to a €450 million ($601 million) windfall from the European Investment Bank (EIB).

The Butendiek windfarm will be constructed 53 kilometers (km) off the coast of Schleswig-Holstein and 32km to the west of the island of Sylt. Boasting 80 turbines it will have a total generating capacity of 288-megawatts (MW).

Construction on the windfarm will kick off early next year according to project developer WPD GmbH & Company KG (Bremen, Germany). WPD has just awarded the turbine contract and a 10-year maintenance contract to German giant Siemens Wind Energy (NYSE:SI) (Munich, Germany), worth an estimated €700 million ($934 million). To date, the EIB is one of the biggest backers of renewable energy in Europe, proving financing totalling €3.8 billion ($5.07 billion) for the offshore wind sector alone. "It is due to the strong commitment shown by the various groups of investors that Butendiek is now able to get off the ground," explained Wilhelm Molterer, EIB Vice-President with responsibility for lending operations in Germany. "And the EIB loan will make an important contribution to this. The financing of renewable energy, particularly offshore wind energy projects, is and will continue to be a key part of the EIB's work, as it is all about meeting Europe's ambitious environmental targets. Here, Butendiek will have a crucial part to play."

Last month, the EIB loaned €500 million ($668 million) to the Baltic 2 offshore windfarm, the largest offshore project in the German Baltic Sea. Located 32km north of the island of Rügen in water depths of up to 44 meters, it will boast 80 turbines from Siemens rated at 3.6 MW each and have the same generating capacity as Butendiek. It will be fully commissioned in 2014. For additional information, see January 18, 2012, article - EIB Loans €500 Million to Baltic 2 Offshore Windfarm.

Butendiek is the eighth offshore wind power plant order that Siemens has won in German waters.

"By 2020, we estimate that 500,000 MW of wind power will be installed worldwide," noted Felix Ferlemann, CEO of Siemens Energy's Wind Power Division. "Offshore wind power plants constitute by far the fastest growing segment of this market. Maritime wind power is playing a key role in Germany's energy turnaround efforts. Its broad acceptance among the general public and significantly higher energy capture than onshore installations are particular points in its favour."

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