Nordex Seeks Clean Energy Projects Outside Europe After RWE Sale

(Bloomberg) --

Nordex SE is set to focus on developing onshore wind projects outside Europe after it agreed to sell its renewable energy project portfolio to RWE AG.

The onshore wind turbine maker is selling 2.7 gigawatts of European projects to Germany's biggest utility for 403 million euros ($473 million). Nordex said it's taking advantage of a “huge appetite” for project portfolios in Europe.

Nordex will continue to sell wind turbines in Europe alongside the new focus.

Its shares jumped as much as 20% today to 10.52 euros, the highest since June 8.

Pulling out of European project development isn't linked to stresses arising from the coronavirus, Nordex spokeswoman Antje Eckert said by phone from Hamburg.

“Selling turbines in Europe is our main business,” said Eckert. The deal with RWE could be sealed in the fourth quarter, she said.

Still, Nordex sought federal and state guarantees in the second quarter for a 350 million-euro credit line as its supply chain was hampered by the pandemic. The guarantees were approved on July 31.

About 1.8 gigawatts of the deal with RWE comprises Nordex's wind projects in France and some solar developments. RWE said it plans to invest as much as 1.5 billion euros each year in green energy projects as it shifts away from conventional power generation.

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