Statkraft sells 50% stake in UK offshore wind project

Norwegian state-owned renewable energy company Statkraft has sold its 50% stake in UK offshore wind project Triton Knoll to Germany’s Innogy, as the seller exits offshore wind power generation, Kallanish Energy learns.

Olav Hetland, senior vice president for wind power at Statkraft, said the company has played a very successful role in the offshore wind industry since making its entrance in 2009, but will now focus on onshore developments.

“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,” he said. “We believe the future of onshore wind in the UK to be very positive, and fully expect the UK government to grasp the opportunity for further onshore wind development.”

The firms said Tuesday they agreed to the terms of the deal, with the value remaining confidential. With the purchase, Innogy becomes the sole owner of the £2 billion ($2.64 billion) project.

“With full control over Triton Knoll, we’ll now develop the project further to final investment decision (FID) at our own discretion. In due course, we will also review all options regarding the ownership structure of Triton Knoll to maximize value for our company and our shareholders,” the buyer said.

The farm is planned to produce 860 megawatts (MW) of electricity off the coast of Lincolnshire, east England. The project, which already has planning consent, last month secured a Contract for Difference in an UK auction, guaranteeing a strike price of £74.75 ($98.96) per megawatt-hour (MWh) produced at the farm for 15 years.

“Triton Knoll is one of the most cost-effective and most competitive offshore wind projects of the latest auction in the UK,” said Innogy.

MHI Vestas is among the preferred contractors and will supply the 90 turbines for the project. Onshore construction work to connect the farm to the power grid will start next year, while offshore construction is scheduled for 2020. Triton’s start-up is expected in 2021.