TRIG buys 14.7% in Sheringham Shoal offshore wind farm

The Renewables Infrastructure Group Ltd (LON:TRIG) has taken a 14.7% stake in the 316.8-MW Sheringham Shoal wind farm in UK waters, marking its first investment in offshore wind.

The company said today the total consideration amounts to some GBP 80 million (USD 107m/EUR 90m). It has been financed from a drawdown of TRIG's revolving acquisition facility.

The offshore wind farm has been operational since 2012. Norwegian state-owned utility Statkraft AS earlier in December agreed to sell its 40% stake in it to fund manager Equitix Ltd. TRIG’s investment is in a joint venture holding company alongside funds managed by Equitix Ltd. A stake of 25.3% is left for these funds. Norwegian oil and gas group Statoil (STO:STLO), which developed the project, holds a 40% stake, while the remaining 20% are owned by Green Investment Group Management Ltd, which is part of Macquarie Group (ASX:MQG) following the privatisation of the UK Green Investment Bank.

The wind farm off the coast of Norfolk has 88 Siemens turbines of 3.6 MW each. It earns its operates under the Renewables Obligation Certificates (ROC) regime, getting 2.0 ROCs per MWh until 2032.

“The investment in Sheringham Shoal adds to the diversification of Company's portfolio and will further enhance TRIG's ability to source and execute additional investments in the expanding and maturing offshore wind market,” the company said.

TRIG said its portfolio reaches a net capacity of 820 MW with the latest acquisition. This figure includes the 20-MW Broxburn battery storage project in Scotland, which is to be completed in April 2018.

(GBP 1 = USD 1.34/EUR 1.13)

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