UK Dudgeon windfarm secures €1.64bn after reaching financial close in six months

12 May 2016 (Last Updated May 12th, 2016 18:30)

Dudgeon Offshore Windfarm has received £1.3bn (€1.64bn) in project financing, which will help meet its capital requirements.

Dudgeon Offshore Windfarm has received £1.3bn (€1.64bn) in project financing, which will help meet its capital requirements.

Having reached its financial close in six months, the 402MW facility is under construction in the North Sea 32km from North Norfolk coast, UK.

Dudgeon Offshore Wind Limited chairman Halfdan Brustad said: "Closing such a significant phase of the project's development so swiftly illustrates the energy industry's confidence in the long-term potential of offshore wind, and the increasing sophistication of financing models available to the sector."

It has cost £1.5bn so far and is being developed by the renewable energy company of Abu Dabai Masdar, Norwegian oil and gas company Statoil, and the state-owned electricity company of Norway Statkraft.

"Scheduled to be operational by the second half next year, it is expected to generate 1.7TWh of electricity annually."

Scheduled to be operational by the second half next year, it is expected to generate 1.7TWh of electricity annually through its 67 Siemens 6MW turbines. This can power more than 410,000 homes and displace 893,000 tonnes of carbon dioxide every year.

Brustad added: "The project benefits the UK's offshore wind industry and at least 70 local jobs will be created directly in the operations phase, during construction, and indirectly in the supply chain.

"More than 50% of the construction cost is anticipated to be spent in the UK supply chain."

Dudgeon is the first offshore wind project in the country that has obtained financing under the government's Contract for Difference scheme.