Gulf Energy Invests in 565 MW of Offshore Wind Projects in Germany, Vietnam

Gulf Energy Development has invested in two offshore wind energy projects worth a combined 565 MW capacity in Germany and Vietnam.

Thailand-based Gulf Energy Development which is primarily engaged in the energy sector has announced that it has invested in two offshore wind energy projects worth a combined 565 MW capacity in Germany and Vietnam.

In Germany, the firm has announced that Gulf International Holding, a wholly-owned subsidiary of the Company, has entered into a Share Purchase Agreement with the group of Global Infrastructure Partners (GIP) to acquire 100 percent shares of Borkum Riffgrund 2 Investor Holding, which owns a 50 percent interest in the Borkum Riffgrund 2 Offshore Wind Farm with a total investment value of approximately EUR 548- 558 million.

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The remaining 50 percent is held by the group of Ørsted.

The BKR2 Project is an offshore wind farm project with an installed capacity of 464.8 megawatts (export capacity of 450.0 megawatts) located in the German North Sea, northwest of Germany. The BKR2 Project has commenced commercial operation since April 2019 and has a Power Purchase Agreement (PPA) and an Operation & Maintenance Agreement (O&M Agreement) with Ørsted for a period of 20 years from the start of operations. Moreover, the BKR2 Project receives a guaranteed Feed-in-Tariff (FiT) backed by the German government for years 1-9.5 after the commencement of commercial operations and will receive merchant price with a guaranteed floor price for years 9.5-20, resulting in the long-term revenue stability of the project.

In Vietnam, the firm has announced that GIH has entered into a Share Purchase Agreement with Ms. Nguyen Tran Thao Nhi, Ms. Tran Thi Thanh Mai and Ms. Tran Thi Minh Trang who are entrepreneurs in Vietnam, in order to acquire 100 percent shares in Dien Xanh Gia Lai Investment Energy Joint Stock Company, the developer and operator of onshore wind farm projects, namely Ia Pech 1 and Ia Pech 2 (contracted capacity of 50 MW each, totaling 100 MW), located in Ia Grai district, Gia Lai province, Vietnam.

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Both projects will generate and sell electricity to Vietnam Electricity (EVN) for 20 years, with a total project cost of approximately USD 200 million. The Company expects to begin the construction for both Ia Pech 1 and Ia Pech 2 within 2021 and the Projects are expected to reach commercial operation by quarter 4 of 2022.