Orsted Acquires Ostwind; Eyes Key Markets in Europe

Jul 25, 2022 03:23 PM ET
  • For a factor to consider of EUR 689 million, Orsted will certainly acquire a 100 % equity interest in key Ostwind firms.
  • The purchase of Ostwind makes up the access of Orsted right into the sizeable and growing German and French onshore markets.

Renewable energy player Orsted has announced the finalizing of an agreement with Germany based Ostwind, a prominent German designer, owner, and operator of onshore wind and solar energy projects in Germany and France.

For a consideration of EUR 689 million, Orsted will acquire a 100 % equity passion in OSTWIND Erneuerbare Energien GmbH, OSTWINDpark Rotmainquelle GmbH & Co. KG, OSTWIND International S.A.S., and OSTWIND Engineering S.A.S.

Orsted considers the advancement, construction, and operation of overseas and onshore wind farms, solar farms, power storage space centers, sustainable hydrogen and green fuels facilities, and bioenergy plants. The agreement includes monetary obligations of the projects and companies.

Based on the main statement of Orsted, the procurement of Ostwind stands for the access of the former into the considerable and broadening German and French onshore markets.

Orsted claimed that this purchase is in tune with the company's approach to more broaden its European impact. With a current portfolio of 4.8 GW of onshore wind and solar PV projects operating already and under construction throughout the US and Europe, not considering the Ostwind portfolio, Orsted gets on the path to fulfilling its target of covering 17.5 GW onshore capacity around the world by 2030.

Neil O'Donovan, CEO, Orsted Onshore, held, "The company has an impressive tried and tested track record of creating high-grade projects in addition to a solid cultural placement with Orsted, a gifted group, and a local community presence-- a rare mix that constitutes a strong platform from which we can create value."

Fabien Kayser, CHIEF EXECUTIVE OFFICER, Ostwind AG, claimed, "The growth of a wind or PV project will certainly need to be expanded in the future to include storage space and sales of power and other campaigns related to field coupling. To totally know these unlimited opportunities of the future renewable energy system, we're really delighted that we have actually done well in locating a huge and extremely knowledgeable companion in Orsted, that is pursuing the objective of 100% renewable energies with great professionalism and trust."

Orsted claimed that the existing management group of Ostwind will remain to run business that will be fused right into Orsted's Onshore organization device over time. Based on merging and foreign investment clearances, the deal is expected to enclose the 2nd fifty percent of 2022.

Orsted had actually acquired Brookfield Renewable's Ireland and UK onshore wind platform last year and it also stepped foot right into the Spanish onshore market lately. The company declares that its onshore renewables platform now requires the US market. It additionally boasts of the four of the biggest growth markets in Europe at scale.

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