Statkraft has announced that it will sell its stake of 30% in the 402MW Dudgeon offshore wind farm in the UK to a consortium led by China Resources for £555m.
The sale is part of the Norwegian state-owned hydropower company’s strategy to exit from offshore wind projects. It follows the recent agreement it signed with investment manager Equitix to sell its stake of 40% in the 316.8MW Sheringham Shoal offshore wind farm in the UK for £558m.
Statkraft stated that its exit from the offshore wind industry is due to limited financial capacity.
With the Dudgeon transaction, the company has sold all holdings in offshore wind and plans to focus on growth in hydropower, solar, onshore wind, district heating and other new renewable energy technologies.
Statkraft UK wind power asset ownership head David Flood said: “As the world leader in the industry, the UK offshore wind market has brought forward cost competitive projects that represent value for UK consumers and investors, alongside ensuring future energy security and decarbonisation.
“We are proud of our contribution and as Europe’s largest generator of renewable energy, Statkraft will continue to play a substantial role in driving forward developments in the renewables industry both in the UK and other markets around the world.”
Located in Great Yarmouth, 40kms off the coast of Norfolk, the Dudgeon Offshore Wind Farm was developed at a cost of about £1.25bn and has recently entered into commercial operations.
Statoil is the operator of the offshore wind farm with a stake of 35% and is partnered by Statkraft and Abu Dhabi-based renewable energy company Masdar which owns a stake of 35%.
Statkraft alongside Statoil had acquired the Dudgeon Offshore Wind Farm in 2013 from Warwick Energy.
China Resources, which is set to take Statkraft’s share of ownership in the project, is a state-owned Chinese conglomerate having interests in various sectors like power, gas, pharmaceuticals, consumer products and others.
Image: Wind turbines of the Dudgeon offshore wind farm. Photo: courtesy of Statkraft.