Equinor has entered into an agreement with Eni to sell a 10% interest in the Dogger Bank Wind Farm C project in the UK.
Equinor continues to capture value from the world class offshore wind asset obtaining an equity consideration of around GBP 70 million.
Eni has also entered into an agreement to purchase a 10% interest in Dogger Bank C from project partner SSE Renewables on the same terms. Once the transaction is complete, the new overall shareholding in Dogger Bank C will be SSE Renewables (40%), Equinor (40%) and Eni (20%).
Eni will enter the asset effective from financial close of project financing which is expected before end of 2021. The farm down transaction is expected to close in 1Q 2022, subject to regulatory and lenders approvals and customary purchase price adjustments.
“With this offshore wind transaction, we continue to demonstrate value creation from Equinor’s renewables business. As with Dogger Bank A and B, the divestment in the Dogger Bank C project is in line with our strategy of accessing selective markets early and at scale, leveraging our offshore capabilities to mature and de-risk projects,” says Pål Eitrheim, executive vice president in Renewables in Equinor.
Equinor and SSE Renewables secured 3.6 GW of offshore wind contracts for Dogger Bank’s in the UK Government’s 2019 Contract for Difference auctions. The first two phases, Dogger Bank A and Dogger Bank B reached financial close at competitive terms in 2020, underlining the attractiveness of the UK offshore wind assets and the confidence in the joint venture.
Once completed Dogger Bank will be the world’s largest offshore wind farm. In total it will generate around 18 TWh annually, enough renewable electricity to supply 5% of the UK’s demand, equivalent to powering six million UK homes.
Extended partner alignment will enable further synergies across, both in the construction and operations phase of the Dogger Bank wind farm. SSE Renewables will continue to lead on the development and construction, and Equinor will operate the asset on completion.
“Dogger Bank is the largest wind farm in the world under construction. Together with SSE Renewables we are pleased to continue with Eni as an industrial partner for all three phases of the windfarm. Together we will deliver value to the UK for years to come and help drive towards a net zero emissions future for the UK,” says Eitrheim.
Equinor aims to become a global offshore wind major and expects to increase its current installed renewables capacity to 12-16 GW by 2030.