Total is to acquire a majority (51%) stake in the Seagreen 1 offshore wind farm from SSE Renewables. The have taken a final investment decision to proceed with the £3 billion project. Total is making an upfront payment at closing of £70 million and earn-outs up to £60 million in aggregate subject to performance conditions. Total said it has secured close to 70% external financing.
Located in the Firth of Forth, Seagreen 1 will have a total capacity of 1,075MW. SSE Renewables will continue to lead on the development and construction of the project, supported by Total, and will operate it on completion, which is expected in 2022/23. The purchase agreement also covers a potential extension opportunity of up to 360MW.
SSE Renewables said giving the green light to capital investment in Seagreen 1 will help deliver low-carbon infrastructure, create jobs and build a supply chains, helping build a cleaner, more resilient economy by pursuing a green recovery from coronavirus.
MHI Vestas Offshore Wind will provide the 10MW turbines, with blades to be manufactured in the Isle of Wight and service operations based in Scotland. Seaway 7 will install the turbine foundations and inter-array cables, as a result creating up to 50 jobs at its Aberdeen office.
Aberdeen-based Petrofac will build the onshore and offshore substations and Montrose Port will be home to the operations and maintenance base for the 25-year life of the offshore wind farm.
In September 2019, SSE Renewables secured a 15-year Contract for Difference (CfD) in the UK Government’s auction for low carbon power for around 40% of the project’s capacity. Another c. 30% will be contracted with the SSE Group.
SSE Renewables continues to develop its wholly owned Seagreen 2 and 3 projects (combined up to 3,200MW), which were awarded exclusive development rights by The Crown Estate in 2010.
It has also started onshore construction on the world’s largest offshore wind farm, Dogger Bank, which it is delivering with Equinor.