Total has entered into an agreement with SSE Renewables to acquire a 51 percent stake in the Seagreen 1 offshore wind farm project for an upfront payment at closing of £70 million and earn-outs up to £60 million in aggregate subject to performance conditions.
The 1.140 MW project has reached a final investment decision and a financial close at the same time. The purchase agreement also covers a potential extension opportunity of up to 360 MW.
Situated 27 kilometers from the coastline in the Scottish waters of the United Kingdom North Sea, Seagreen 1 secured all required major permits, and onshore construction began in Q1 2020.
The project will start producing renewable electricity from the end of 2022, designed to cover the energy needs of around 1 million homes. Once finished it will be the largest offshore wind farm in Scotland.
The project represents a global investment of around $3.7 billion. Total has secured close to 70 percent of external financing for its 51 percent stake.
“Total builds up a strong position in the world’s largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the UK North Sea. This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity.
“As one of the main actors in the UK energy sector, Total will leverage its extensive expertise in offshore operations and maintenance to contribute to the success of the project alongside country’s leading offshore wind developer, SSE Renewables.”Patrick Pouyanné, chairman & CEO of Total.
“We are delighted to be partnering with Total to deliver Scotland’s largest offshore wind farm, Seagreen, which will make a significant contribution to the UK’s green recovery from coronavirus by unlocking £3bn of low carbon investment and generating the low carbon power we need to reach net zero. Today’s announcement is the result of great efforts by both teams to successfully complete this transaction in the current challenging circumstances.
“Total’s extensive global experience in the offshore environment combined with their clear ambition to contribute to the development of renewable energy worldwide is a strong fit with SSE Renewables’ strategic objective to treble our renewable output by 2030.”Alistair Phillip-Davies, chief executive SSE.