Germany's 976.5MW Gennaker Offshore Wind Project Completes €2.1 Billion Debt Financing

en.Wedoany.com Reported - On September 11, the Gennaker offshore wind project developed by Skyborn Renewables and Stadtwerke München (SWM) reached financial close. The project secured €2.1 billion in non-recourse debt financing from a lending group comprising the European Investment Bank and 16 commercial banks. The project as a whole will mobilize over €3 billion in investment, officially transitioning from the financing implementation stage to the construction execution stage.

Gennaker is located in the German Baltic Sea, with a planned installed capacity of up to 976.5MW, approximately 15 kilometers from the Fischland-Darß-Zingst peninsula. Financial close means that debt financing, equity arrangements, power purchase agreements, and major supply and installation contracts have met the conditions to take effect. Skyborn will continue to manage project construction and will be responsible for long-term asset management after completion, with a target for commercial operation by the end of 2028.

The project has previously completed several key contract milestones. Amazon has signed a 600MW long-term power purchase agreement, while SWM has participated in the project through equity investment; OEG has been awarded the contract for the impressed current cathodic protection system for wind turbine foundations, with a scope of work covering detailed design, procurement, manufacturing supervision, offshore logistics, installation, testing, and commissioning. This €2.1 billion financial close represents a new capital milestone built on these prior contracts and is not the same event as the earlier PPA, equity partnership, and equipment subcontracting agreements.

Under the project financing structure, this €2.1 billion is non-recourse project debt, with loan repayment primarily relying on the Gennaker project's own cash flows. Following financial close, the project enters a period of large-scale construction execution, with subsequent core milestones shifting to foundations, submarine cables, wind turbine installation, and grid connection construction, advancing according to the schedule for full commercial operation by the end of 2028.