German giants join up to develop wind farms

Essen based HOCHTIEF Solutions AG is well established in the offshore wind industry, with involvement in a number of European projects. As well as owning two jack-up barges, it will soon take delivery of the first of two next generation installation vessels in partnership with GeoSea NV. The second partner, Dusseldorf based private equity company Ventizz Capital Partners, was established in 2000 and focuses its activities on technology oriented, high growth companies.

Both companies have now formed a 50/50 joint venture known as HOCHTIEF Offshore Development Solutions Sảrl, aimed at developing offshore wind farms. The partners have identified the earnings potential in the high growth market for offshore wind energy and their plans include, for example, acquiring and developing windfarm concessions then subsequently capitalising on the resulting value growth by selling them on before construction begins.

Reducing the costs of offshore wind projects, together with avoiding delays and project overruns, is at the top of the agenda of the industry currently and a number of variations are emerging as project partners change the degree and diversification of their involvement. Another factor is the increasingly diverse nature of the make-up of wind farm operators, now typically including energy suppliers, public utilities, financial investors and, in increasing numbers, large industrial companies.

The new partnership points out that the lack of required management capacity is still a substantial obstacle to growth in the offshore wind power market, with perceived associated risks for projects currently in progress. The new JV plans to focus on readying the subsequent construction in a way that significantly reduces the risk of cost overruns and delays. With the subsequent sale of projects to future operators, benefits will be gained from the offshore management expertise allowing the building and developing of the windfarm more efficiently and reliably.

HOCHTIEF and Ventizz state that the JV will pool the competencies of two partners that complement each other perfectly. HOCHTIEF has a long history in port construction, marine civil engineering and offshore logistics. It is involved in providing construction and logistics services at a number of European windfarms including Alpha Ventus and Borkum West, both in German waters, and Lillgrund off Malmo, Sweden.

HOCHTIEF Offshore Development Solutions already has its first project planned, with the introduction by Ventizz into the JV of the Nautilus II windfarm. PNE Wind AG sold the windfarm to Ventizz in 2011, which is to support the development project until approval is obtained. They also have their sights set on four other windfarms in the North Sea and Baltic.

By Peter Barker