BW Offshore is to invest €60m ($72.5m) in floating offshore wind solutions provider Ideol in a second major investment in the renewables sector by Singapore’s BW Group.
The company, which will be renamed BW Ideol, also aims to carry out a private placement and potential listing as a separate company in Oslo.
The Singapore floating storage, production and offloading specialist said it expects to own about 50% of the company after the contemplated capital raise and listing.
Ideol management and employees are expected to own about 20% of the shares post listing.
BW Offshore said its experience in developing and operating offshore production systems and capital markets access was “highly complementary to Ideol's floating offshore wind IP and expertise”.
Euronext admission
BW Ideol is planning to seek admission to trading on the Euronext Growth Oslo by the end of March next year. BW Offshore will participate in the planned private placement as an anchor investor.
Carnegie and Nordea Bank have been appointed sole advisers for the admission process and the private placement of new shares which will go towards funding the development of the companies’ project pipeline.
“We see solid opportunities for developing offshore power production solutions to drive energy transition at global scale,” BW Offshore chief executive Marco Beenen said.
“We are combining our four decades of offshore development, financing and operational experience with Ideol’s proven floating offshore wind technology and expertise.”
Ideol chief executive Paul Dupin de la Gueriviere said the combination of the two companies provides a “strong platform” for accelerated growth as a leader in floating offshore wind technology and growing developer of offshore renewable energy projects.
BW Offshore said BW Ideol will have “clear strategic targets” including growth as a technology and engineering, procurement and sonstruction services provider, expanding and maturing a significant portfolio of development projects and becoming a long-term asset owner and operator.
In the event of a delay to the planned capital raise and admission to trading, BW Offshore will provide a convertible shareholder loan of up to €10m to finance BW Ideol's development plans and working capital requirements throughout this year.
Ideol has two floating wind turbines in operation — one in France, off Le Croisic, and one in Japan, off Kitakyushu.
The company claims to be building up what it describes as a “sizeable pipeline of projects” as co-developer in Japan, Europe and the US.
