Eni to invest EUR 447m in partial ownership of Dogger Bank

Italian oil-and-gas major Eni SpA (BIT:ENI) has struck deals to acquire a 20% ownership interest in the first two phases of the 3.6-GW Dogger Bank offshore wind project in UK waters.

Eni will pay GBP 202.5 million (USD 272m/EUR 223.5m) to each of SSE Renewables, part of UK utility SSE plc (LON:SSE), and Norway’s Equinor ASA (NYSE:EQNR), which currently share the ownership of the larger scheme. Once the transaction closes early next year, subject to regulatory clearance, SSE and Equinor will each hold 40% stakes in the 1.2-GW Dogger Bank A and 1.2-GW Dogger Bank B projects, and will continue to equally own the 1.2-GW Dogger Bank C.

The announcement comes about a week after SSE and Equinor said they have reached financial close on Dogger Bank A and B, having secured GBP 4.8 billion of total senior debt facilities plus ancillary facilities of around GBP 0.7 billion. The total cost of building the two wind parks is estimated at GBP 6 billion. The process will be executed in two stages, to be completed in 2023 and 2024, respectively.

The entire Dogger Bank, including the C portion, should be up and running in March 2026. The three wind farms will be located off the north east coast of England and will be capable of generating about 5% of the UK’s demand. Together, they will form the world’s largest offshore wind complex. Each phase is supported by an offshore wind contract awarded in the UK government’s 2019 Contract for Difference (CfD) auctions.

The deal marks Eni’s entry into the offshore wind market in Northern Europe and will add 480 MW of renewable energy capacity to its portfolio once the wind parks become operational. The company expects to also be able to explore potential synergies with the retail business. It aims to have 5 GW of installed renewables in 2025, 25 GW in 2035 and 55 GW by 2050.

(GBP 1.0 = USD 1.342/EUR 1.104)

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