Northland Power Inc. has confirmed that the 600 MW Gemini offshore wind farm achieved full completion on April 28, 2017. The project was completed ahead of schedule and under its total budget of €2.8 billion (US$3.06 million).
All 150 turbines have been operating since October 2016 and, to date, have generated over €250 million (US$273 million) of net pre-completion revenues. Full completion marks the official end of construction and signifies that all of the terms required to satisfy the project lenders for term conversion have been achieved.
Concurrent with achieving full completion and term conversion of the loan, Gemini has also successfully and favourably restructured the project's €2 billion (US$2.18 billion) senior debt. This restructuring will reduce loan margins, remove the original cash sweep requirements in year 5 under the previous mini-perm financing, and significantly improve distributions to Gemini's owners.
As a result of these significant milestones, the project will soon make its first cash distribution to its owners; Northland expects to receive a one-time distribution of approximately €31 million (US$33.85 million) comprised of its share of excess net pre-completion revenues and unused construction contingency. Regular distributions from Gemini are expected to commence in December of this year and semi-annually thereafter.
John Brace, CEO of Northland said:
"This announcement is a remarkable achievement and the result of exceptional collaboration between all involved. I would like to commend the Gemini project team; Siemens, who supplied, erected and commissioned the turbines; Van Oord, who designed, procured and installed all other aspects of the project; and everyone engaged with the debt restructuring for their significant efforts. The successful completion of our first offshore wind farm -- ahead of schedule and under budget -- combined with the loan restructuring, reflects Northland's proficiency in delivering high-quality sustainable energy infrastructure that provides attractive shareholder returns."
The offshore wind farm is owned by Northland Power (60%), Siemens Financial Services (20%), Van Oord Dredging and Marine Contractors BV (10%) and N.V. HVC (10%). Gemini is expected to generate enough clean and renewable energy to meet the needs of 1.5 million people in the Netherlands, and reduce the country's CO2 emissions by 1.25 million tons per year. Located 85 kilometers from the coast of Groningen, Gemini is one of the largest offshore wind farms in the world.