Eni to take 20% stake in the third phase of world’s largest offshore wind farm.
Combined value of equity consideration is GBP £140m or GBP £70m to both SSE Renewables and Equinor for each 10% stake.
SSE Renewables and Equinor each to maintain 40% stakes in Dogger Bank C.
SSE Renewables to continue to lead construction of the project.
Equinor retains responsibility as lead operator for wind farm’s operational life.
SSE Renewables and Equinor have today confirmed that Eni, already a partner on the first two phases of Dogger Bank Wind Farm, will also join as a partner in the third phase of the world-leading offshore wind farm project.
Located over 130km off the north-east coast of England, Dogger Bank Wind Farm is being built in three 1.2GW phases and will be the largest offshore wind farm in the world when operational, with an overall capacity of 3.6GW.
The 1.2GW third phase of Dogger Bank won a CfD in the 2019 auction and is currently jointly owned 50/50 by SSE Renewables and Equinor. Dogger Bank C is being developed on a different timescale to the first two phases, Dogger Bank A and B, which are being constructed at the same time.
Today’s transaction will see SSE Renewables and Equinor each selling a 10% stake in Dogger Bank C to Eni, resulting in Eni taking a 20% equity stake in the third phase of the world’s largest offshore wind farm. The combined value of the equity consideration is GBP £140m, or GBP £70m to both SSE Renewables and Equinor for each 10% stake. Both SSE Renewables and Equinor will each maintain 40% stakes in Dogger Bank C upon completion.
The transaction is expected to complete in Q1 2022 subject to Dogger Bank C reaching Financial Close, on track by the end of 2021, and to regulatory approvals and customary purchase price adjustments.
Today’s stake sale announcement to Eni follows a similar announcement last year that SSE Renewables and Equinor had sold a 20% stake in Dogger Bank A and B of to Eni (10% each by SSE Renewables and Equinor) in a deal that completed in February 2021. Upon completion of the Dogger Bank C transaction being announced today, the new overall shareholding in the 3.6GW Dogger Bank Wind Farm will be SSE Renewables (40%), Equinor (40%) and Eni (20%).
Extended partner alignment across all three phases of the project will enable further synergies across both the construction and operations phase of Dogger Bank Wind Farm.
SSE Renewables will continue to lead the development and construction of the overall wind farm, with Equinor retaining responsibility for operation for the wind farm’s life of around 35 years.
Dogger Bank Wind Farm Project Director, Steve Wilson, said:
“We are delighted to now have Eni on board as an industrial partner for all three phases of the project. This further strengthens the partnership between SSE Renewables, Equinor and Eni to deliver the world’s largest offshore wind farm. We are on track to reach financial close on Dogger Bank C by the end of the calendar year and progressing to programme with the onshore civil works on Teesside.”
Dogger Bank Wind Farm will be constructed over 130km out to sea off the north-east coast of England, where wind speeds are higher and more consistent than near to the shore. The ground-breaking project is breaking world records and pioneering new technology in its delivery. It will be the first project to use the largest commercially available turbine operating in the world today, the 14MW GE Haliade-X and due to its distance from shore, the first UK High Voltage Direct Current connected wind farm.
Onshore construction began in 2020 and is currently underway for Dogger Bank A and Dogger Bank B, with offshore construction on Dogger Bank A due to begin in Q2 2022. First power is expected in Summer 2023 and Summer 2024 for Dogger Bank A and B, respectively, with commercial operations to follow around 6 months later. Turbine installation for Dogger Bank C will begin in 2025.
Almost 3000 new UK jobs have been announced so far that will be supported by the construction and operation of Dogger Bank Wind Farm. These include up to 750 direct and around 1,500 indirect jobs associated with the set-up of a new world-class blade manufacturing facility on Teesside by LM Wind Power, a GE Renewable Energy business, with production due to start in 2023.
Once the three phases are complete, which is expected by March 2026, Dogger Bank will be the largest offshore wind farm in the world. Each phase of Dogger Bank will be able to produce 6TWh of renewable electricity, totalling 18TWh annually across all three phases – that’s enough renewable electricity to supply 5% of the UK’s demand and equivalent to powering six million UK homes.
