Joint venture partners SSE Renewables and Equinor have reached financial close on Dogger Bank Wind Farm C, the third phase of what will be the world’s largest offshore wind farm when complete in March 2026.
SSE Renewables and Equinor are already constructing the first two phases of the 3.6GW Dogger Bank Wind Farm with Eni, joint venture partner on phases A and B of the offshore wind project to be installed off the north east coast of England. Now, with financial close being reached on the project’s third phase, Dogger Bank Wind Farm has passed the last important milestone ahead of its construction delivery programme.
Total investment in Dogger Bank Wind Farm will be around GBP9 billion, of which around GBP3 billion is for phase C including offshore transmission capex in the range of GBP900-1000 million.
Dogger Bank C has a capacity of 1,200MW and will generate around 6TWh. In total, Dogger Bank will produce enough clean, renewable electricity to supply 5 per cent of the UK’s demand, equivalent to powering six million UK homes.
Dogger Bank A and B is a joint venture between SSE Renewables (40 per cent), Equinor (40 per cent) and Eni (20 per cent). On 2 November 2021 SSE and Equinor announced the sell down of a combined 20 per cent share in Dogger Bank C to Eni (10 per cent each) for a total consideration of £140m. The transaction is expected to close in Q1 2022, subject to regulatory and lenders approvals and customary purchase price adjustments. Eni will enter the asset effective from completion of the sell down transaction. Once the transaction is complete, the new overall shareholding in Dogger Bank C will be SSE Renewables (40 per cent), Equinor (40 per cent) and Eni (20 per cent). Extended partner alignment will enable further synergies across, both in the construction and operations phase of the Dogger Bank wind farm.
Alistair Phillips-Davies, SSE Chief Executive, says: “It is a fantastic achievement to be reaching financial close on the third phase of the world’s largest offshore wind project, just weeks after COP26 concluded in Glasgow and today marks an important early milestone in the delivery of our own Net Zero Acceleration Programme. Our plans will enable delivery of over 25 per cent of UK’s 2030 40GW offshore wind target, whilst also expanding overseas, delivering over 20 per cent of upcoming UK electricity networks investment and deploying the critical flexibility technologies to provide security of supply.
“Construction is well underway on the first two phases of Dogger Bank with work on the third phase already progressing and we look forward to this ramping up in the New Year. As well as providing clean, green power, Dogger Bank is enabling the planned GE blade manufacturing plant in Teesside and a huge number of direct and indirect jobs.”
Pål Eitrheim, Equinor EVP of New Energy Solutions, says: “Reaching financial close on the third phase of Dogger Bank is a significant milestone as it demonstrates that we are on track with developing what will become the world’s largest offshore wind farm. The extensive interest from lenders underpins the attractiveness of UK offshore wind assets and the confidence in SSE and Equinor as developers. The level of interest achieved reflects the quality of the project and enables strong return on equity. As the wind farm’s future operator, we will leverage our offshore execution capability and continue to deliver value for years to come.”
