Dong Energy agrees £1.6bn sale of Race Bank offshore windfarm

Dong Energy has agreed to sell 50 per cent of its Race Bank offshore wind farm project to Macquarie Group.

The total proceeds from the acquisition including the ownership share and commitment to fund 50 per cent of the project’s capital expenditure amount to £1.6 billion, funded by a combination of project finance debt and equity.

The two firms have agreed a framework for sharing construction risk of the project, which is currently in the advanced stages of construction.

Dong Energy wind power chief executive and executive vice president Samuel Leupold said: “I welcome Macquarie as partner on Race Bank. They have successfully invested in infrastructure projects world-wide and have experience in offshore wind from previous investments.”

Dong Energy will manage the completion of the construction phase and has also entered an agreement to provide operations and maintenance services from its O&M base in Grimsby.

Macquarie Capital Europe head of energy and infrastructure Mark Dooley said: “We are delighted to partner with DONG Energy on the Race Bank offshore windfarm. DONG Energy is an industry leader and pioneer in offshore wind power development globally.

“Macquarie Group launched in the UK in 1989 and has since invested £6 billion of capital into European renewables – and this further demonstrates our ongoing focus and commitment to the offshore wind sector.”

The 573MW offshore windfarm is expected to be fully commissioned in 2018.

At the start of this year Dong agreed to sell half of the 258MW Burbo Bank Extension wind project for £660 million to Danish pension provider PKA and Kirkbi A/S, which each took a 25 per cent share in the project.