SSE and Equinor have agreed to sell 10 per cent stakes in a Dogger Bank offshore wind farm development to Eni in a £140 million deal.
The Italian energy giant, one of the global oil majors, is greening up its portfolio in the move, having already bought stakes in earlier projects.
Dogger Bank is set to be one of the world’s largest offshore wind farm zones when completed, and remains on track to reach financial close by the end of the year.
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The 1.2GW Dogger Bank C phase, which won a Contract for Difference in the 2019 auction - was previously a 50/50 joint venture between SSE and Equinor. It now moves to a 40-40-20 split.
The deal is expected to complete by the first quarter next year, subject to regulatory approvals and customary purchase price adjustments.
SSE Renewables will continue to lead on the development and construction, while Equinor will operate the asset on completion. It will be anchored at Port of Tyne.
SSE intends to use the proceeds to support the delivery of its net zero-orientated strategy and plans to set out further details on its capital expenditure at its half-year results update later this month.
The company typically sells down stakes to retain 30 to 40 per cent equity in an offshore wind project. A statement explained that this enables partners to bring specific capabilities to bear at the optimal point in the project lifecycle for their risk appetite, while facilitating capital recycling into low-carbon electricity asset growth options and securing developer premiums.
It also reduces the overall risk exposure on large-scale projects and avoids a large increase in net debt that is not earning.
SSE's finance director Gregor Alexander said: “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.”
At the end of November last year, SSE and Equinor reached financial close on the first two phases of Dogger Bank Wind Farm, off the north east coast of England. A 20 per cent stake in each phase was sold to Eni, which completed in February.
