DNV GL Completes Due Diligence of World’s Largest Offshore Wind Farm
DNV GL has successfully completed a lenders’ technical due diligence on Ørsted’s Hornsea Project One, the world’s largest offshore wind farm with a total capacity of 1.2 GW.
The project, which is currently under construction, consists of 174 7 MW Siemens Gamesa wind turbines and is located 100 km offshore, making it the furthest offshore wind farm in the UK. The exceptional distance is made possible by an innovative electrical transmission system using the world’s first offshore reactive power compensation mid-station, enabling power to be transmitted 100 km to shore.
Working in close collaboration with Ørsted and the lenders, legal, financial and insurance advisors, DNV GL conducted an independent energy yield assessment and undertook a detailed technical due diligence study on all aspects of the offshore wind farm and offshore transmission assets.
DNV GL’s Energy Transition Outlook report forecasts that renewable energy sources will power a surge in electricity demand, accounting for an estimated 80% of global electricity production in 2050. As electricity consumption accelerates, offshore wind farms will play an increasingly important role to ensure that we can meet this demand.
“Drawing on our extensive offshore wind experience, we identified the key technical and commercial aspects of the project. This enabled 35 financial institutions, many of which have limited experience in lending to offshore wind projects, and a credit rating agency to evaluate the risk profile of the proposed structure, and to lend various tiers of debt capital to the project. Making it the largest project financing of a single renewable energy asset known to date,” said Prajeev Rasiah, Executive Vice President for DNV GL’s Energy business in Northern Europe, Middle East & Africa.