Japanese cos buying 41% of Triton Knoll offshore wind project

MHI Vestas blade. Image: Courtesy of MHI Vestas Offshore Wind.

August 13 (Renewables Now) - Japanese utilities Electric Power Development Co (TYO: 9513), also known as J-Power, and Kansai Electric Power Inc (TYO:9503) will take a combined 41% stake in Innogy SE’s (ETR:IGY) 860-MW Triton Knoll offshore wind project in the UK.

The German energy company announced on Monday that it has sealed an agreement, through its unit Innogy Renewables UK Ltd, to offload a 25% stake to J-Power’s unit JP Renewable Europe Co (JPREC) and a 16% stake to Kansai Electric’s subsidiary KPIC Netherlands NV. Innogy, which will keep a 59% majority equity stake in the project, now expects to achieve financial and equity close in the third quarter.

According to a report by the Nikkei Asian Review, the deal is estimated to be worth about USD 900 million (EUR 791m). The transaction is subject to approval by Innogy’s supervisory board and financial close with the debt funding of the Triton Knoll project.

The 90-turbine Triton Knoll offshore wind farm, which won a contract for difference (CfD) in a tender by the UK government in 2017, will be built off the Lincolnshire coast at a total cost of GBP 2 billion (USD 2.5bn/EUR 2.2bn). MHI Vestas Offshore Wind's V164-9.5 MW turbines have been selected for the project. Innogy said it expects offshore construction to begin late next year, while commissioning of the complex is planned to start in 2021. It is managing the construction process and operation and maintenance (O&M) works on behalf of its partners.

Near the end of 2017, Innogy acquired the 50% stake of Norwegian state-owned utility Statkraft in the Triton Knoll project and is currently its sole owner. The sale of the 41% stake is part of its strategy “to pursue a partnership-based approach to realise large-scale offshore wind farms,” the German firm said.

(USD 1.0 = EUR 0.878)
(GBP 1.0 = USD 1.275/EUR 1.120)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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