RWE, a Germany-based power producer, has acquired the remaining 49% stake in Nordseecluster, a 1.6 GW cluster of offshore wind farms from Northland Power, for approximately €35 million (~$37.5 million).

Canada-based Northland Power is a renewable energy project developer with ownership or economic interest in 2.6 GW operating capacity.

The Nordseecluster offshore wind farm is located north of the island of Juist in the German North Sea and was a joint venture by RWE and Northland before the transaction. The total gross capacity comprises 1,560 MW of offshore wind projects, including Nordsee Two, Nordsee Three, Delta Nordsee, and Godewind.

With the acquisition, RWE has become the sole owner of the Nordseecluster, which is set to become Germany’s first gigawatt-scale offshore wind cluster.

The Nordseecluster will be developed in two phases, Nordseecluster A and B.

Currently, in the permit application phase, Nordseecluster A consists of two wind farms, N-3.8 and N-3.7, with a combined capacity of 660 MW.

Offshore works for Nordseecluster A are scheduled to commence in 2025, with commercial operations anticipated to begin in early 2027.

Nordseecluster B, the second phase, will encompass two additional wind farms, N-3.6 and N-3.5, adding a further 900 MW of capacity starting in 2029.

Once operational in 2027 and 2029, the Nordseecluster is expected to generate approximately 6 TWh of green electricity annually.

RWE has already selected preferred suppliers for the main components of all four sites to maximize efficiency and harness the benefits of scale. Vestas, a wind turbine manufacturer, will deliver 104 offshore wind turbines with a capacity of 15 MW each.

The company envisions the Nordseecluster as a cornerstone in its strategy to leverage synergies and achieve substantial economies of scale in offshore wind farms’ development, construction, and operation.

Sven Utermöhlen, CEO of RWE Offshore Wind, said, “Becoming the sole owner of the Nordseecluster aligns with our ambition to further grow our position as a global leader in offshore wind.”

Utermöhlen highlighted the significant size and scale that the Nordseecluster would provide, emphasizing RWE’s commitment to supporting Germany’s decarbonization drive.

The Nordseecluster will be close to the existing 332 MW Nordsee One wind farm, which RWE will continue to operate jointly with Northland Power.

Northland Power’s priority is to develop and achieve financial close for two significant offshore wind projects in 2023, the 1 GW Hai Long project in Taiwan and the 1.2 GW Baltic Power project in Poland. The company’s pipeline includes 19 GW of offshore and onshore renewable projects in Canada, the US, Europe, Asia, and Latin America.

RWE plans to participate in the upcoming German offshore wind auctions later this year to expand its presence further in the country.

In October last year, RWE signed a purchase agreement with Con Edison to acquire all shares in Con Edison Clean Energy Businesses for a purchase price based on an enterprise value of $6.8 billion.