Centrica has agreed to sell its Race Bank offshore wind farm project, located 27km off the Norfolk Coast, to DONG Energy, for a consideration of £50m.
Centrica has completed the planning and front end engineering design phase so far, while DONG Energy, following this transaction, will now take forward the development of the project.
The Crown Estate has awarded a 50-year lease to Centrica in 2004 to develop a wind farm at Race Bank beyond UK territorial waters (12 nautical miles).
The company has submitted a consent application to the Department of Energy and Climate Change (DECC) in January 2009 seeking approval for the proposed project, which was awarded the consent for up to 580MW in July 2012.
Additionally, the company has completed an environmental statement, based on a detailed environmental impact assessment, for the project and submitted the same to the federal government in September 2009.
Once operational, the project, with a potential maximum capacity of 620MW, will generate enough electricity to power around 450,000 UK homes annually.
Located off the Lincolnshire and north Norfolk coasts, the project's three offshore substations will be connected to the National Grid network at the existing Walpole substation.
Centrica will retain equity interests with a total capacity of 290MW in four operational wind farms in the UK after completing the transaction.
Centrica Energy managing director Mark Hanafin said this transaction represents the next step in the development of the Race Bank wind farm and the project will continue to progress towards a final investment decision.
Image: Centrica to sell Race Bank wind farm project to DONG Energy. Photo: courtesy of Centrica.