SSE and Equinor announced today (2 December) they have reached financial close on Dogger Bank C, the third phase of what will be the biggest offshore wind farm in the world when it is completed in March 2026.
Construction on the first two phases of the 3.6GW project off the east coast of Yorkshire has already begun.
The third phase will cost approximately £3 billion, including offshore transmission capex in the range of £900 million to £1 billion. It will have a capacity of 1.2GW and will generate around 6TWh a year.
Last month SSE and Equinor sold a combined 20% share in Dogger Bank C to Eni, which owns the same percentage of the first two phases.
The partners said that financial close on Dogger Bank C had involved 28 banks and three export credit agencies. They said that, taken in aggregate with the financing last year of the A and B phases, this is the largest offshore wind project financing to date globally.
The project is being financed with gearing of c70% for the generation assets, with gearing on the transmission facilities set at 90% of the forecast offshore transmission owner sale proceeds. Total senior debt facilities are c£2.5 billion plus ancillary facilities of c£435 million.
SSE’s chief executive Alistair Phillips-Davies said: “It is a fantastic achievement to be reaching financial close on the third phase of the world’s largest offshore wind project, just weeks after COP26 concluded in Glasgow and today marks an important early milestone in the delivery of our own Net Zero Acceleration Programme. Our plans will enable delivery of over 25% of UK’s 2030 40GW offshore wind target, whilst also expanding overseas, delivering over 20% of upcoming UK electricity networks investment and deploying the critical flexibility technologies to provide security of supply.”
Pål Eitrheim, executive vice president of new energy solutions at Equinor, said: “Reaching financial close on the third phase of Dogger Bank is a significant milestone as it demonstrates that we are on track with developing what will become the world’s largest offshore wind farm. The extensive interest from lenders underpins the attractiveness of UK offshore wind assets and the confidence in SSE and Equinor as developers.”
SSE Renewables is leading on the development and construction of Dogger Bank Wind Farm, with Equinor set to operate it on completion for its expected operational lifespan of 35 years.
Last week it was announced that power purchase agreements for Dogger bank had been signed with Danske, Centrica and Shell.