19 Jul 2018by David Foxwell The European Commission has approved the merger of the Mermaid and Seastar offshore windfarms, a move that will generate scale effects and enable cost reduction. The European Commission has approved the merger of the Mermaid and Seastar offshore windfarms, a move that will generate scale effects and enable cost reduction. Financial close for the new company formed by the merger, to be known as Seamade NV, is expected at the end of 2018 with construction to start in 2019. Seamade will be responsible for the development of the Mermaid and Seastar offshore wind zones, which together have a capacity of 478.2 MW, which is approximately 25% of the currently allocated offshore wind capacity in Belgium. The merger will allow both projects to be financed in a single transaction. Seamade said it hopes that the regulatory framework for the project, which was agreed with the Belgian government at the end of 2017, will soon be implemented after approval by the European Commission and publication of relevant Royal Decrees. The project's aim is to achieve financial close by the end of this year. Construction could then start in 2019 in order for the windfarm to be fully operational by the end of 2020. Otary RS NV, which brings together various Belgian specialists in renewable energy, will remain the majority shareholder in the Seamade project. Otary’s shareholders include Green Offshore and Power @ Sea, dredging and marine engineering specialist DEME and green energy actors Aspiravi and Elicio. The Walloon environmental holding SRIW Environnement, and the Flemish and Walloon energy and utility holding companies Z-Kracht/Nuhma and Socofe are also shareholders. The European Commission also approved a plan for Eneco Wind Belgium to become a shareholder in Seamade. It will hold 12.5 % of the shares in the company; Otary and Electrabel will hold 70% and 17.5%, respectively. Seamade chief executive Mathias Verkest said the merger would create synergies and scale effects that would facilitate cost reduction. The windfarms will use 58 Siemens Gamesa Renewable Energy turbines on monopile foundations and two offshore substations which will connect to Elia’s modular offshore grid.
The European Commission has given approval for two offshore wind farm operators to merge, enabling them to generate economies of scale and reduce costs. The decision by the commission on Tuesday is a major boost to developers who have been struggling with high costs in recent years as they seek to build new projects off Britain’s shores. Seamade said it hopes the project will be fully financed by the end of the year, with construction beginning in 2019 and the facility operational by the end of 2020.