Blackstone is partnering German firm Windland Energieerzeugungs to construct a windfarm 80 kilometers off the northern coast of Germany.
The firm confirmed reports from a week ago, saying the €1 billion ($1.5 billion) Meerwind project would comprise 80 turbines and had been made possible by the German government’s desire to incentivise renewable energy projects. The government introduced an area management plan for future wind farms in the North and East Sea in June. When completed, the facility will supply electricity to 500,000 households, it added.
This is the second sizeable investment in the renewable energy sector that Blackstone has made.
One of its portfolio companies, Sithe Global, struck a deal to construct an $870 million hydro electric powerstation in Uganda in December 2007.
Private equity and real estate firm have been paying closer attention to such investments in recent months. European private equity firm Hg agreed to finance and take an equity stake in a Swedish onshore windfarm.