July 07, 2023: French state-backed investor ADEME Investissement has finalized an agreement to provide funding for a new floating wind company in partnership with BW Ideol, a global leader in offshore floating wind. The joint venture aims to advance the development of offshore floating wind projects.
As part of the agreement, BW Ideol will transfer its co-development project portfolio to a newly established entity called BW Ideol Projects Company. ADEME Investissement will invest €17.85 million at the first financial closing, which is scheduled for September 2023. Further capital injections will be determined through funding calls, with BW Ideol and ADEME Investissement sharing equal financing responsibilities.
Upon completing all funding calls, ADEME Investissement and BW Ideol will jointly invest €40 million in the development company. BW Ideol will hold a 75.8% ownership stake in BW Ideol Projects Company, resulting in a post-money valuation of approximately €74 million.
The first financial closing is contingent upon the completion of the new company, including the approval by Crown Estate Scotland for the transfer of BW Ideol’s share in Buchan Offshore Wind to BW Ideol Projects Company.
BW Ideol will manage the development company through a service agreement while retaining full ownership of its other business activities and assets. These include its technology, intellectual property, the floater engineering, procurement, construction, and installation (EPCI) business line, the exclusivity agreement with the Port of Ardersier in Scotland for a floater production line, the Floatgen demonstrator, and its ownership in the EolMed offshore floating wind farm pilot. The existing teams in engineering, business development, project execution, supply chain, legal, innovation, and finance will also remain with BW Ideol.
As additional projects are matured and financed, ADEME Investissement will gradually increase its ownership stake in the development company.