United Kingdom Green Investment Bank invests £461M (about €558M) in the UK offshore wind sector

0

The UK Green Investment Bank (GIB) has announced two equity investments in the UK offshore wind sector:
• £241M to jointly purchase a 50% stake of Westermost Rough offshore wind farm.
• £220M to acquire a 10% stake in the Gwynt y Môr offshore wind farm.
GIB is investing alongside Japan’s Marubeni Corporation to jointly purchase a 50% stake in the Westermost Rough offshore wind farm, from DONG Energy. GIB is committing £241m to the c. £500m transaction.
The Westermost Rough project, currently in the early stages of construction off the coast of Yorkshire, will utilize Siemens’ next generation 6 MW direct drive turbines, which are almost twice the size of the majority of wind turbines operating in UK waters. This is the first time these new turbines will be commercially deployed in the UK.
Once operational, Westermost Rough will generate over 800GWh of net renewable electricity, equivalent to the electricity consumption of c. 200,000 homes.
GIB has also agreed to acquire a 10% stake in the Gwynt y Môr offshore wind farm, from RWE Innogy, which purchase price is £220m. The project, off the coast of north Wales, is in the late stages of construction.
Gwynt y Môr is the largest offshore wind farm under construction in Europe. Once operational it will generate over 1,700 GWh of net renewable electricity each year. This is equivalent to the electricity consumption of c. 400,000 households or meeting the electricity requirements of a city the size of Bristol.
These investments are part of a strategy, led by GIB, to mobilize capital into the UK offshore wind industry. Helping developers to refinance part of their investments in developed projects is essential to ensuring that the industry is able to deliver the next round of new projects. By making these investments on fully commercial terms GIB is able to directly finance the expansion of the sector and create a demonstration effect that other investors can follow.