Momentum divest Offshore Windpark Bockstigen to a Danish Investor

Momentum Energy Group has sold Windpark Bockstigen in Gotland and signs a 5 years asset management contract with investor.
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Offshore-Windpark-Bockstigen-divestment

 

The windfarm was repowered in late 2018 where the turbines was completely renovated and upgraded from 38 m rotor to 47 m rotor and a renovated Vestas V47 nacelle. New cables and modern and updated software was also installed (Link til case.)

After one year’s successful operation with an availability of over 99 % and more than a 100% increase in production compared to earlier, the windpark was sold to a Danish investor in December 2019.

The windpark made new production records in both January and February 2020 confirming our best prognosis for the estimated output.

5 things we learned from the process:

  • Big is beautiful – but small is nice. We had to cancel a large planned 48 MW wind project in the area, due to lack of capacity in the network to mainland Sweden. We found alternative ways to increase production and prolong the technical lifetime of the existing smaller +20 years old windfarm and got something out of nothing.
  • Our prediction of more than a doubling of the output was achieved. We increased the yearly output from 5 mill. kWh to +10 mill kwh and experienced no major problems the first 12 months of operation.
  • As a company, Momentum successfully moved to new territory as no one had made repowering of an offshore wind farm before. This has opened a new world to us and we are investigating similar options elsewhere in the market.
  • We experienced an exemplary teamwork between our technicians, project managers, engineers and finance experts which enabled us to reduce CAPEX with more than 30%, making the project economical feasible. The realized cost was spot on projected cost.
  • Without being able to pull from a strong international network within banks, insurance companies, spare part vendors, service companies, municipalities and authorities, it would have been impossible to realize the project.

The project was divested to a financially strong Danish investor as part of building up a diversified portfolio of wind turbines in northern Europe. We have also assisted the investor with investing in other wind projects in Denmark and Germany. Momentum have established long-term asset management contracts in all the projects as an essential part of the partnership.

“This transaction shows our ability to think “out of the box” and find solutions where others have given up. As asset manager, this pushes the limits of Momentums capabilities yet again. We are extremely proud of finishing a 5 years period with Momentum as owner, with handing the windfarm over to one of our good customers, and at the same time entering a long-term asset management contract, which is our core business. It is not the last time we will use old, refurbished, wind turbines in our seeking for optimal solutions, for our customers.”

Kim Madsen, CEO

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