UK-based renewable investment firm Octopus Renewables Infrastructure Trust (ORIT) has agreed to acquire a 7.75% stake in the Lincs offshore wind farm.
With an installed capacity of 270MW, Lincs is located offshore from England’s east coast and has been operational since 2013.
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By GlobalDataCovering a 35km² area, the offshore wind facility is equipped with 75 wind turbines, each with 3.6MW of capacity. It is operated and managed by Danish energy company Ørsted.
The facility benefits from the UK’s renewable obligation certificate (ROC) scheme, receiving two ROCs for each MWh of energy it generates in its first 20 years.
The deal is expected to close in the second quarter of this year subject to the receipt of consent from existing investors and lenders.
Upon completion, Lincs will represent almost 10% of ORIT’s portfolio on a gross asset value basis.
ORIT chairman Phil Austin said: “Our investment into Lincs is ORIT’s first into an operational offshore wind farm, and will provide us with an additional revenue-generating asset that benefits from the favourable renewable obligation certificate (ROC) subsidy regime and gives ORIT further portfolio diversification.
“The acquisition will also strengthen ORIT’s relationships with leading investors and operators in the offshore sector.”
ORIT is managed by Octopus Energy’s sister company, Octopus Renewables.
Octopus Energy acquired Octopus Renewables last July, having announced plans to acquire the company earlier in the year.
In December last year, Canadian investment company CPP Investments announced a $300m equity investment in Octopus Energy under a long-term strategic partnership.
The investment was intended to support Octopus Energy’s global expansion plan and made by CPP Investment’s Sustainable Energies Group.
Octopus said it planned to use the funding to improve its Kraken technology platform, which was created to support its own retail, generation and flexibility businesses.