Northland Power Inc. announced it has entered into agreements for the rights to acquire a majority equity stake in Gemini, a 600MW offshore wind project currently in advanced development.

Gemini is located 85 kilometres off the coast of the Netherlands in the North Sea, which combines one of the strongest and most reliable wind resources in the world with favorable sea bed conditions.

Northland has entered into agreements with a highly qualified team of offshore developers and contractors. The team includes Typhoon Offshore B.V.; Siemens (via Siemens Financial Services); Van Oord Dredging and Marine Contractors B.V. and HVC N.V.

In 2010, Gemini was granted two 15-year agreements with the Government of The Netherlands through a competitive tender under the government's Sustainable Energy Production Incentive program. These agreements provide a premium price for the large majority of the wind farm's output for 15 years and incorporate mechanisms that reduce revenue exposure to wind production volatility.

Northland's final investment and Siemens' final investment are subject to different approvals. Upon closing, Northland will acquire a 55% interest in Gemini.

Once operational, Gemini will be one of the largest wind farms in the world, and will produce approximately 2.5TWh annually.

Siemens Wind Power was selected as the preferred supplier and operator for the wind turbines. Van Oord will be responsible for supply and installation of the wind turbine foundations and the entire electrical infrastructure.

Project Gemini's total cost is projected to be $3.8 billion, and is expected to be financed with a combination of non-recourse project debt, mezzanine financing and equity from the consortium. Northland's total net investment will be approximately $400 million.

Construction of Gemini is expected to start in late 2014; it is expected to reach commercial operations in 2017.

Source: Northland Power