RWE has signed an agreement with Greencoat to sell a 49 % stake in the UK offshore wind farm Humber Gateway for a total cash consideration payable at completion being GBP 648 million.
The disposal is part of RWE’s capital rotation program and the proceeds will be used to finance further growth in the renewable energy business.
Greencoat is a UK-based investment manager whose funds invest in operating UK wind farms and other renewable projects.
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 buildout 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.
The company is currently constructing the offshore wind farm Triton Knoll and is developing the Sofia offshore project which will enlarge RWE’s existing UK portfolio of nine offshore wind farms. In addition, RWE recently signed Agreements for Lease with The Crown Estate to develop extension projects at four offshore wind farms. Furthermore, the company has a strong footprint in the UK onshore market.
With an installed capacity of 219 megawatts (MW), Humber Gateway is located in the United Kingdom, off the coast of East Yorkshire. The wind farm was commissioned in 2015. With a 51% share in the project, RWE will remain the majority shareholder in the project and the wind farm will continue to be operated by RWE. RWE has not only extensive and long-lasting experience in developing and constructing complex renewable energy projects, but also in operating and maintaining renewables plants following their commission.
By the end of 2022, RWE aims to expand its renewables portfolio to more than 13 gigawatts capacity by investing €5 billion net. Together with partners, the gross investment volume can amount to up to €9 billion. To achieve its growth targets, RWE has an attractive project development pipeline of more than 22 gigawatts, across all of the company’s strategic core regions.
Closing of the transaction is subject to the approval of the Supervisory Board of RWE AG and is expected by mid-December 2020.