German electric utility company Energie Baden-Wuerttemberg (EnBW) has made its final €2.4 billion (~$2.6 billion) investment decision on He Dreiht, a major wind project in the German North Sea.

The project has a capacity of 960 MW and will consist of 64 wind turbines, each with a capacity of 15 MW.

EnBW has agreed to sell a 49.9% stake in the project to a consortium led by Allianz Capital Partners, which will help to fund the project’s overall cost. Once operational, the wind farm will provide green electricity to around 1.1 million households.

EnBW has secured long-term funding of €600 million (~$644 million) to finance the project from the European Investment Bank.

Construction is expected to last for two years and nine months. Installation works are scheduled to run from April to August 2024, and turbine and cable installation from April to August 2025. The grid connection date is December 2025, with commercial operations starting in late 2025.

EnBW has signed several long-term power purchase agreements for He Dreiht with companies such as Fraport, Evonik, Salzgitter, and Bosch, covering 335 MW. Talks with other companies are underway.

“With the sale of a 49.9% minority stake to a consortium consisting of Allianz Capital Partners on behalf of Allianz insurance companies, AIP, and Norges Bank Investment Management, we have succeeded in bringing highly professional and experienced partners on board even before construction begins,” said Thomas Kusterer, CFO of EnBW.

EnBW already operates the nearby Hohe See and Albatros offshore wind farms.

EnBW has committed to investing approximately €4 billion (~$4.3 billion) in wind and solar energy expansion by 2025. By the end of 2025, the company aims to have over 50% of its generation portfolio comprised of renewable energy sources. The company’s ultimate goal is to achieve climate neutrality by 2035. With these ambitious targets, EnBW is positioning itself as a leader in transitioning toward a more sustainable and carbon-neutral future.

In January, the German Federal Maritime and Hydrographic Agency (BSH) published the area development plan 2023 aimed at helping Germany achieve its target of expanding offshore wind energy to 30 GW by 2030.

The BSH plan will further support the European Commission’s target to increase Europe’s total offshore wind capacity to 60 GW by the decade’s end and 300 GW by 2050.