SSE is selling a stake in the giant Dogger Bank windfarm to Italian oil major Eni in a deal that underlines the appeal of UK renewable energy assets to overseas investors.
Eni has agreed to acquire a 10 per cent interest in Dogger bank C from Perth-based SSE for £70 million. It is also buying a 10% interest in Dogger bank C from Norway’s Equinor for £70m.
The deal comes months after Eni acquired ten per cent stakes in the first two phases of Dogger Bank from each of SSE and Equinor, for £405 million in total.
Eni chief executive Claudio Descalzi said the Dogger C acquisitions were important deals that would allow the firm to accelerate its growth strategy in renewable energy and to strengthen its presence in the offshore wind market in Northern Europe. He described this as one of the most promising and stable markets in the world.
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SSE noted that Dogger Bank will benefit from subsidy support under the Contracts for Difference regime.
Dogger Bank is set to become the largest windfarm in the world. Due for completion in 2026 the windfarm it is expected to generate enough power for six million homes.
The windfarm is being built around 80 miles off the coast of North East England and will feature up to 600 turbines.
The sale will allow SSE to realise a return on the investment it has made in Dogger Bank C to date and free up funds to invest in other assets.
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Gregor Alexander, SSE’s finance director, said: “The sale … represents good value for shareholders and will enable us to continue to recycle capital into creating more low-carbon electricity assets.”
He added: “We see significant opportunities to drive further growth in the transition to net zero and partnering in this way will help us to realise this potential.”SSE is also developing the Seagreen windfarm off the Angus coast and the Viking facility in Shetland.
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