10 September 2013 12:35
Disposal of transmission assets at London Array, the world’s largest offshore wind farm
London Array, a joint venture owned by DONG Energy, E.ON and Masdar, today [10 September 2013] announced that it has signed an agreement for the sale of transmission assets at the world's largest offshore wind farm to Blue Transmission London Array Limited.
The disposal takes place pursuant to the Offshore Transmission Owner (OFTO) regime. Following a competitive tender, Blue Transmission London Array Limited was selected as preferred bidder for the London Array offshore transmission licence in September 2012 by Ofgem.
With an asset value of £459m, this is the largest transaction to date in the OFTO regime. The sale is expected to complete later this month.
Blue Transmission London Array Limited is the licensee entity incorporated by the consortium of Barclays Infrastructure Funds Management Limited and Diamond UK Transmission Corporation (a wholly owned subsidiary of Mitsubishi Corporation), advised by Macquarie Capital.
London Array has been selected by Blue Transmission London Array Limited to provide operations and maintenance services to the transmission link connecting the 630MW London Array Offshore Wind Farm to the onshore grid.
London Array is located around 20km off the coasts of Kent and Essex on a 100km2 site. Its 175 Siemens 3.6MW turbines have a combined capacity of 630MW and are expected to produce enough electricity to power over half a million UK homes each year.
The project is owned by DONG Energy (50%), E.ON (30%) and Masdar (20%).
Notes to editors:
DONG Energy is one of the leading offshore wind farm developers in the world, with more than 20 years' experience in the wind power industry. The UK is one of DONG Energy's primary markets for developing offshore wind and so far we have invested £3 billion in UK renewables since 2005. The London Array is the latest of five offshore wind farms to be commissioned by DONG Energy in the UK and we have Lincs and West of Duddon Sands under construction with partners and Westermost Rough. We also have a demonstration project at Gunfleet Sands of two Siemen's 6 megaWatt turbines as part of our strategy to reduce the cost of offshore wind and reach our target of 100 euros per megawatt hour for projects sanctioned in 2020.
DONG Energy's business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has nearly 7,000 employees and is headquartered in Denmark. The Group generated DKK 67 billion (EUR 9.0 billion) in revenue in 2012. For further information, see www.dongenergy.com.
E.ON is one of the world's largest investor-owned power and gas companies, with annual sales of 132 billion Euros and more than 72,000 employees. E.ON is active in onshore and offshore wind, concentrating solar power (CSP), solar PV and biomass and currently has over 9GW of renewable capacity in operation, which makes it a leading global renewable player.
E.ON is committed to being a leading player in the offshore wind industry and it already owns and operates three offshore wind farms in UK waters. The UK's first offshore wind farm near Blyth in Northumberland, Scroby Sands off the coast of Great Yarmouth and Robin Rigg in the Solway Firth. E.ON's proposed Rampion site off the Sussex Coast is currently awaiting planning approval, while the Humber Gateway offshore wind farm, located off the Holderness Coast in the East Riding of Yorkshire, is under construction.
E.ON is committed to growing its offshore wind fleet across Europe and it intends to invest €7 billion in its offshore programme over the next five years, through creating industrial-scale wind, solar and biomass power plants. For further information visit www.eon.com
Masdar is Abu Dhabi's renewable energy company advancing the development, commercialisation and deployment of clean energy technologies and solutions. The company serves as a link between today's fossil fuel economy and the energy economy of the future. Backed by the Mubadala Development Company, the strategic investment company of the government of Abu Dhabi, Masdar is dedicated to the Emirate's long-term vision for the future of energy.
Masdar entered into the London Array scheme when it purchased 40% of E.ON's half share of the London Array scheme, giving Masdar a 20% stake in the project overall. The London Array investment is part of Masdar's global alternative energy strategy which includes solar, wind and other renewable technologies. Masdar, which works with a range of innovative renewable energy companies and utilities, is continuously growing its portfolio of investments, partnerships and production capabilities in the renewable energy and clean technology sectors.
For more information about Masdar, please visit www.masdar.ae.