Sumitomo Corp. agreed with Belgian offshore wind energy company Parkwind to take shares in two offshore wind farm projects off the coast of Belgium. Parkwind's shareholders are the Colruyt Group, Korys NV, the investment holding of the Colruyt family, and PMV.
The two offshore wind projects consist of Belwind 1, in operation since late 2010 and Northwind but still under construction. The Belwind project is located on the Bligh Bank in the North Sea, which is about 28.5 miles off the coast of Belgium and has a production capacity of 165 MW.
The Northwind project is also located in the North Sea, on the Lodewijk Bank, about 23 miles off the Belgian coast and will enjoy a capacity of 216 MW. The project cost for Belwind 1 was $850 million and the project cost for Northwind is expected to be about $1.1 billion, a total of up to $2 billion for both wind farms.
Once completed, the two wind farms will compose of over 127 wind turbines manufactured by Vestas. The electricity generated is sold through long-term agreements to Electrabel and corresponds to the needs of about 370,000 households.
Sumitomo will acquire a 39 percent stake in the Belwind 1 project and a 33.3 percent stake in the Northwind project through its units following the approval from the European Commission and any other competent competition authority. Parkwind and Sumitomo have also entered into a project development agreement to work together on the development of the Belwind 2 project, a 165 MW offshore wind farm adjacent to the Belwind 1 wind farm.