Bloomberg News

Hochtief Plans Joint Venture for Offshore Wind Farm Developments

November 17, 2011

Nov. 16 (Bloomberg) -- Hochtief AG, Germany’s largest builder, plans to set up a joint venture with an investment partner to develop offshore wind farms.

Hochtief’s Solutions unit and an investor the company declined to identify are seeking to purchase at least two wind farm concessions off Germany and develop the projects, said Ullrich Reinke, head of energy and infrastructure at the unit.

Term sheets have been signed with the investor and first purchases will be announced in “four to five months,” Reinke said yesterday in Gdynia, Poland. “We want to enter the offshore wind farm value chain much earlier.”

Germany seeks to install 10,000 megawatts of turbines off its coast this decade to help replace its nuclear reactors, which are to shut down by 2022. Hochtief, with 20 billion euros ($27 billion) of sales last year, could lend financial power to projects that cost as much as 1.5 billion euros.

Hochtief and the investor would lead project development and help secure financing before selling the farm, he said.

The construction company is also seeking to offer wind farm maintenance and is designing a special service ship.

Hochtief, already active in the construction phase of wind farms, is spending 200 million euros to build Europe’s most powerful offshore wind farm construction vessel in the Gdynia shipyard.

--Editor: Randall Hackley

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net -0- Nov/16/2011 09:40 GMT


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