DONG Energy has agreed to divest half of its 50% share in the 630MW London Array 1 offshore wind farm to Canadian institutional fund manager La Caisse de dépôt et placement du Quebec (La Caisse) for a consideration of £644m.
After completion of the transaction, La Caisse will own a 25% stake in the existing joint venture, alongside DONG Energy (25%), E.ON (30%) and Masdar (20%), while DONG Energy, which will then represent 157.5MW, will remain as O&M service provider for the project.
Located approximately 20km off the coasts of Kent and Essex, the wind farm features 175 Siemens 3.6MW turbines and will generate 630MW of electricity, which is enough to power around 500,000 homes and curb around 900,000t of carbon dioxide emissions annually.
The companies have also signed a long-term transfer agreement for the power production and associated green certificates arising from La Caisse's share of the project.
Slated to be completed in the first half of 2014, the transaction is subject to several customary conditions including transfer of project rights and operational performance and securing necessary approvals from relevant authorities.
The developers had started construction on the wind farm in 2009, completed turbine installation in December 2012 and inaugurated the project in July 2013.
DONG Energy Wind Power executive vice-president Samuel Leupold said the company has signed an agreement with La Caisse.
Leupold said, "Farm down of our ownership shares in wind projects is a central part of our business model and our strategy is to continuously enter into partnership agreements with industrial and financial partners to extract part of the value creation from our projects, share the risk in our portfolio and attract capital to be able to continue to invest in new offshore wind farms.
"We look forward to continuing the collaboration with the partners behind the consortium of London Array, now including La Caisse."
Image: DONG Energy divests 50% of its share in London Array 1 offshore wind farm. Photo: courtesy of London Array.