The Netherlands: Greenchoice and Delta to Buy Electricity from Typhoon Offshore

Energy companies Greenchoice and Delta are in talks with Typhoon Offshore, the developer of the mega wind farm Gemini, about using the huge amount of electricity that can be generated as from 2016.

The Gemini is to start on the drawing board in 2013 . The planned wind farm will be 55 kilometers north of Schiermonnikoog in the North Sea, and will be producing 600 Mw when in operation. The contracting of the electricity is an important step for the project.

The construction of what is by far the largest Dutch offshore wind project should be (there is a € 4.5 billion subsidy available for a maximum of 15 years available) has long had to contend with headwinds. Initially planned as a Bard project, it attracted criticism when the German developer and turbine manufacturer was awarded the major part of the work by the Dutch Government.

Dutch utilities Nuon, Essent and Eneco, had been very annoyed that a foreign party had initially been awarded this prestigious assignment.

When the Germans got into financial difficulties, however, Bard’s minority partner Typhoon had to take over the baton.

Typhoon’s first success was with attracting Taqa in investing. Taqa, the energy investment fund of Abu Dhabi, later denied that they were interested in taking a controlling stake in the project.

Then the European Investment Bank announced in the autumn of 2012 that they were interested in financing Typhoon’s plans to the tune of € 500 million. Siemens will be making the 4 MW turbines, and possibly become a shareholder in the park. The Meewind investment fund will be placing € 150 million in the project with the remainder being found by the banks.

There will be a total of 4 shareholders in the project, the fourth shareholder will be the North Holland waste disposal company HVC with a 15% stake. Taqa will be the largest stakeholder with 40%.

The building cost will be a total of €2.5 billion and is planned to produce electricity sufficient for 785,000 households

Energy companies Zeeland Delta and Greenchoice are the 4th and 6th largest energy providers in the Netherland, respectively. HVC will also be able to tap the Gemini energy source.

[mappress]

Offshore WIND staff, December 19, 2012; Image: typhoon offshore