Dong Energy and Siemens Project Ventures (SPV) have signed a joint venture contract to acquire 50% stake of a 270MW UK offshore wind farm project Lincs from Centrica, against payment of 50% of the incurred development costs, currently estimated to GBP 50m.
Dong Energy and SPV will hold 25% stake each in the wind farm. Completion of the transaction is expected in January 2010. The companies' aggregated 50% share of the project represents a capital investment of approximately GBP375m. The estimated investment level is net of anticipated proceeds from the disposal of assets under the offshore transmission regime.
The Lincs project is situated eight kilometres off the coast of the town Skegness, Lincolnshire, in eastern England. The project is currently in the final design and procurement phase. Construction of the project is expected to commence in the late summer of 2010, with commissioning scheduled for 2012. Centrica will continue to own 50% of the company.
It is anticipated that the wind farm will be capable of meeting the annual electricity needs of approximately 200,000 households.
Anders Eldrup, CEO of Dong Energy, said: "Lincs is an attractive project that will benefit from the UK Government's enhanced financial framework for offshore wind. The project is well suited for using the newest technology within offshore wind turbines. At Dong Energy, we look forward to broaden and strengthen our collaboration with Centrica."
Johannes Schmidt, CEO of equity investments and project finance at Siemens Financial Services, said: "This investment is a logical step in further strengthening our environmental portfolio by providing yet another good example for the combination of sustainable technologies with economic efficiency. Centrica is a leading developer of offshore wind energy in UK and we welcome the opportunity to working together on sustainable technologies."
The Lincs project is situated eight kilometres off the coast of the town Skegness, Lincolnshire, in eastern England. The project is currently in the final design and procurement phase. Construction of the project is expected to commence in the late summer of 2010, with commissioning scheduled for 2012. Centrica will continue to own 50% of the company.
It is anticipated that the wind farm will be capable of meeting the annual electricity needs of approximately 200,000 households.
Anders Eldrup, CEO of Dong Energy, said: "Lincs is an attractive project that will benefit from the UK Government's enhanced financial framework for offshore wind. The project is well suited for using the newest technology within offshore wind turbines. At Dong Energy, we look forward to broaden and strengthen our collaboration with Centrica."
Johannes Schmidt, CEO of equity investments and project finance at Siemens Financial Services, said: "This investment is a logical step in further strengthening our environmental portfolio by providing yet another good example for the combination of sustainable technologies with economic efficiency. Centrica is a leading developer of offshore wind energy in UK and we welcome the opportunity to working together on sustainable technologies."
Source: Energy Business Review
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