SSE Sells Stake in Biggest Offshore Wind Farm to Eni

(Bloomberg) --

SSE Plc and Equinor ASA sold a 20% stake in the first two phases of Dogger Bank wind farm to Eni SpA for 203 million pounds ($272 million) each.

Dogger Bank will cost 6 billion pounds to build and will be the biggest offshore wind farm in the world. The 480-megawatt acquisition marks Eni’s first entry into the offshore wind industry.

Eni’s is the latest in a line of major oil companies including Royal Dutch Shell Plc that have looked to the North Sea and its giant windmills to kickstart ambitious decarbonization plans.

Eni has a target of 5 gigawatts of installed renewable capacity in its portfolio by 2024.

“For Eni, entering the offshore wind market in northern Europe is a great opportunity to gain further skills in the sector thanks to the collaboration with two of the industry’s leading companies,” said Claudio Descalzi, chief executive officer of Eni.

SSE and Equinor announced financial close for the project on November 26. Once complete the project will generate enough electricity to supply 5% of the U.K.’s demand.

The deal is expected to complete in early 2021, subject to regulatory and lender approvals. There is no change to the ownership of the third phase of the project, the 1,200-megawatt Dogger Bank C, in which SSE and Equinor each have a 50% stake.

SSE increased guidance for earnings per share by 15 pence to between 85-90 pence, it said in a statement.

“This transaction will enable us to fund further low-carbon growth opportunities, helping to deliver governments’ net-zero ambitions and our own target to treble our renewable output by 2030,” Gregor Alexander, finance director at SSE said.

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