A £648 million deal has been agreed for a significant stake in a Grimsby offshore wind farm, underlining confidence in the market.
Greencoat, a UK-based investment manager, has struck a deal with RWE for 49 per cent of Humber Gateway, with the funds to be used to finance further investment in renewable energy.
It is not the first time the pair have worked together, offshore wind farm Rhyl Flats and onshore sites Little Cheyne Court, Lindhurst and Middlemoor having similar agreements in place.
RWE, which has emerged as the owner following one of the biggest ever deals in German industrial history with developer and early operator E.on, will continue to operate and maintain the farm - the closest to the port, just five miles off Spurn Point.
A spokesperson for RWE said: “The transaction with Greencoat demonstrates the attractiveness of the United Kingdom for investment in wind power.
“The market provides great potential for growth with significant build-out targets. This means the UK will play a key role in RWE’s strategy to grow its renewables business and to become carbon neutral by 2040.”
RWE is currently constructing Triton Knoll off the Lincolnshire coast and is developing the Sofia offshore project in the North East, which will enlarge RWE’s existing UK portfolio of nine offshore wind farms.
It has also recently signed lease agreements with The Crown Estate to develop extension projects at four offshore wind farms.
Humber Gateway was commissioned in 2015 and is operated and maintained from a purpose-built base on the North Wall of Port of Grimsby East.
The farm features 73 MHI Vestas 3MW turbines, with a height of 136m, with power coming ashore on the East Yorkshire coast.
Shonaid Jemmett-Page, chairman of Greencoat, said: "We are delighted to announce our investment in Humber Gateway, a high load factor, ROC accredited offshore wind farm. This transaction adds another attractive asset to our portfolio which will stand at 38 wind farm investments, with a generating capacity of 1.2GW. We are also very pleased to be able to play our part in the wider development of the wind industry, heralded by recent government announcements, and enabling the continued build out of further offshore generating capacity in the UK."
The deal comes as UK Wind Week launches, with the closing of the transaction - subject to the approval of the supervisory board of RWE AG - expected by mid-December.
