Statkraft and Statoil to sell half of Dudgeon wind farm project

13 Aug 2014 – Statkraft and Statoil are looking to sell about a 50% stake in their jointly-owned UK offshore wind farm project, Dudgeon, two people claiming familiarity with the situation said.

Rothschild is rumoured to be involved in the sale of the asset, one of the people added. 

Statkraft and Statoil made a final investment decision on Dudgeon in July. The wind farm has planning permission to be up to 560MW in size. The capex requirements for its construction are about GBP 1.5bn, the companies said at the time. 

In December the project became one of few to be awarded a lucrative contracts-for-difference (CfD) subsidy by the UK’s Department of Energy and Climate Change (DECC), which will see it receive a set amount for the power it generates that is much higher than wholesale prices. For instance, offshore wind receiving a CfD in the financial year of 2014/2015 would get GBP 155/MWh. Meanwhile the wholesale price of day-ahead contract for delivery on 14 August is GBP 41.02/MWh on the N2EX exchange. The securing of this CfD will increase Dudgeon’s attractiveness to potential buyers, said the second person. 

Dudgeon is located off the coast of North Norfolk, near Sheringham Shoal, an operating offshore wind farm also jointly owned by Statoil and Statkraft. Earlier this week Mergermarket reported that the companies are in talks to sell a stake of Sheringham Shoal with the Green Investment Bank and Arcus Infrastructure Partners. An official announcement is expected in the next month. 

Statkraft and Statoil declined to comment. Rothschild did not respond to a request for comment. 

by Giovanni Amodeo & Katie McQue

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