Italian oil and gas company Eni has agreed to buy a 20% stake in the Dogger Bank C offshore wind project – 10% each from SSE Renewables and Equinor for £70 million apiece.
Dogger Bank is set to become the world’s largest offshore wind farm, with each of its three phases – A, B and C – providing 1.2GW of generation capacity. Eni completed the purchase of 20% stakes in the first two phases from SSE and Equinor in February 2020.
The latest transaction is expected to be competed in the first quarter of 2022, subject to regulatory approval, and will leave SSE and Equinor with 40% stakes in all three phases.
They said this consistent combination of equity partners will enable further synergies across both the construction and operations phases of Dogger Bank. SSE will continue to lead on the development and construction and Equinor will operate the wind farm upon completion.
SSE and Equinor reached financial close on the first two phases in November 2020. Financial close for Dogger Bank C is expected by the end of 2021.
The Dogger Bank wind farm, which will be located more than 130 kilometres off the northeast coast of England, secured Contracts for Difference in the 2019 auction and is scheduled for competition in 2026.
SSE said the deal is consistent with its strategy of selling down its stakes in offshore wind projects to 30 to 40% to bring in new partners with relevant capabilities and unlock capital to invest in new developments as it seeks to reach a net run-rate of 1GW of new renewable assets per year in the second half of this decade.
The company said it will reveal further details of its investment plans in a half-year results update later this month.
SSE finance director Gregor Alexander said: “SSE welcomes Eni as an industrial partner to the Dogger Bank C project. The sale of a stake in Dogger Bank C to Eni represents good value for shareholders and will enable us to continue to recycle capital into creating more low-carbon electricity assets.
“Together with our partners we are building the world’s largest offshore wind farm, creating value and tackling climate change.”
Pal Eitrham, executive vice president for renewables at Equinor, said: “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.”