Ørsted, formerly known as Dong Energy, has signed an agreement to sell 50% of the 659MW Walney Extension offshore wind farm project.
The buyers will be a consortium consisting of two Danish pension funds. Each investor will obtain a 25% ownership interest in the project. Walney Extension, which is currently under construction, will be the world’s largest offshore wind farm when commissioned in the second half of 2018. Ørsted will construct the wind farm under a full-scope EPC contract and long-term operations and maintenance services from its O&M base in Barrow-in-Furness and provide a route to market for the power generation from Walney Extension.
Henrik Poulsen, chief executive of Ørsted, said: ”We’re delighted to welcome two Danish pension funds as co-owners of Walney Extension. We already have a strong partnership with PKA on three other offshore wind farms and we look forward to building an equally long-lasting relationship with PFA on what will be the world’s biggest wind farm when completed. Both partners are committed to the green energy transition and I’m pleased that our offshore wind assets continue to be attractive to institutional investors.”
The total sales price comprises the acquisition of a 50% ownership share and the commitment to fund 50% of the payments under the EPC contract for the entire wind farm (including the transmission assets), and amounts to approx £2bn, which will be paid during 2017 and 2018.
The Walney Extension project will have 87 8MW wind turbines in an area of 145km2 in the Irish Sea approximately 19km, from the Cumbria coast.
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