26 Nov 2015 – Dong Energy, a Danish energy firm, has hired Rothschild to advise on a 50% stake sale of its Race Bank offshore wind farm project, two people familiar with the situation said.
Dong is the sole owner of Race Bank, after it bought the project from Centrica [LON:CNA] in 2013 for GBP 50m. It has a potential maximum capacity of 580MW. Offshore construction is due to begin in 2016, and it is targeted to become commercially operational in 2018, according to Dong’s website. It will be located about 17 miles from the North Norfolk coast and span 29 square miles.
The Crown Estate had awarded a 50-year lease to Centrica to build Race Bank wind farm in 2004. Development consent for the project was awarded in 2012.
The marketing of Race Bank began in recent weeks, and the sales process is likely to gain momentum in 1Q16, the first person said.
Dong intends to retain operatorship of Race Bank, the second person said.
Halving its equity stakes in offshore wind projects is typical of Dong’s business model, the first person said.
In October this new service reported that Dong was selling a 50% stake in its Burbo Bank Extension UK offshore wind farm project. The sales process for this is ongoing, with Citi acting as sellside advisor.
Dong and Rothschild declined to comment.
By Katie McQue