Northland Power Inc. has inked an agreement to purchase the 252 MW Deutsche Bucht (DeBu) offshore wind project. Located about 77 kms Northland’s Nordee One development, DeBu adds yet another project to the company’s growing European wind energy assets.

"We are pleased to add a third solid and robust offshore wind project to Northland's portfolio. Continued growth in the thriving offshore wind sector is an important component of Northland's strategic development approach. DeBu will support our commitment to deliver long term value to shareholders, while aiding the global transition to clean and green energy sources,” said John Brace, CEO at Northland.

The company expects to invest approximately $400 million of corporate funds with the balance of the project cost provided by project financing and pre-completion revenues. Financial closing is expected mid-2017. Northland expects this investment will be sourced from cash on hand, corporate liquidity, and preferred shares.

DeBu is currently in an advanced stage of development - it is expected to begin construction shortly after financial close, with project completion expected by the end of 2019. Like Gemini, DeBu will use a two-contract construction strategy. MHI Vestas Offshore Wind (MVOW) has been selected as the preferred supplier to supply and install the turbines.

An affiliate of Van Oord nv, the balance of plant contractor for Gemini and the other preferred supplier, will provide the turbine installation vessel and supply and install the wind turbine foundations and the offshore electrical infrastructure. MVOW will also maintain the turbines under a long-term service contract. DeBu will be connected to the 800 MW BorWin Beta off-shore converter station which has already been constructed.

DeBu is entitled to receive a fixed feed-in tariff subsidy for approximately 13 years under the German Renewable Energy Act. The first eight years will see the project receive approximately EUR 184/MWh and EUR 149/MWh for the remainder. The majority of the project returns are expected to be earned during the 13 year feed-in-tariff period, with the remainder of the expected returns earned in the later years from the German wholesale electricity market.