Industry News

DNV GL Provides Due Diligence to Lenders for Offshore Wind Farms

DNV GL, the world’s largest independent energy advisory and certification body, is providing due diligence for investments in multiple offshore wind projects.

Walney Extension

The company secured a leading role as technical advisor to a group of institutional lenders with their investment of the 659 MW Walney Extension. Located off the coast of North West England at Barrow-in-Furness, the Walney Extension offshore wind farm will bring a unique mix of wind turbine types, featuring 40 MHI Vestas V164 and 47 Siemens SWT-7.0-154 turbines.

DNV GL conducted a detailed technical due diligence study and full independent energy production assessment, allowing the group of lenders to develop an understanding of the technical characteristics and risk profile.

The group of lenders for Walney includes:

  • Aviva Investors
  • BlackRock Investment Management (UK) Limited
  • Legal & General Investment Management Real Assets
  • Macquarie Infrastructure Debt Investment Solution

Through DNV GL’s technical assessment to the group of lenders, the company’s team of offshore experts provided valuable details on the risk profile of the offshore project, enabling the lenders to enter the strategically important and ever-expanding offshore wind market.

“As the offshore wind industry matures, new lenders are entering this rapidly growing market, seeking stable long-term returns which are sustainable, and economically considerate. DNV GL has broad experience in offshore wind since 1993 and this venture into one of the world’s largest offshore wind farms was, for many of the lenders, their first in offshore wind. This is yet another indication of the importance of offshore wind in our growing low carbon energy system. We are proud to support these new sources of investment into this market,” said Prajeev Rasiah, Executive Vice President for DNV GL’s Energy business in Northern Europe, Middle East & Africa.

Built in the Irish Sea, the newly expanded Walney wind farm will have a total generating capacity of 1.7 GW. DNV GL’s comprehensive experience in lenders’ and owners’ due diligence for over 30 GW of wind projects, provided the group of lenders with detailed insight into the technical risk of their customers’ investment decision.

Borssele III/IV

DNV GL also successfully completed a comprehensive due diligence project on the 730 MW Borssele III/IV construction-ready offshore wind project in the Netherlands.

The work was commissioned by Partners Group, the global private markets investment manager, in preparation for its successful bid to acquire a 45% stake in the project on behalf of its clients. The investment will make funds managed and/or advised by Partners Group the largest shareholder in the Borssele III/IV farm.

The Borssele III/IV offshore wind farm will comprise seventy-seven Vestas 9.5 MW turbines across two sites in the North Sea, approximately 25 km off the Dutch coast. Construction is due to start in the second-half of 2018 and commercial operations are expected to commence in 2021. When fully operational, Borssele III/IV is expected to generate 3 TWh per year, enough to power approximately 825,000 households. Before bidding to acquire shares from existing investors including Shell, Mitsubishi and Eneco, Partners Group contracted DNV GL to carry out a technical due diligence on the project. This featured an independent engineering review of the technical details of the project and associated contractors and companies, including technical details of the market environment.

“At a time of intense focus on the offshore wind industry, the Dutch project auctions have been monitored with a great deal of interest around the world. Our interdisciplinary and cross-border team of technical experts provided Partners Group with a comprehensive technical due diligence ahead of their investment,” said Andreas Schröter, Executive Vice President Central Europe & Mediterranean at DNV GL - Energy.

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