Enbridge Inc. has acquired a 24.9%stake in the 400-megawatt Rampion offshore wind project in the UK for £370 million (US$564 million).
The amount includes all interest during construction, transaction costs and a development fee. The project was developed and is being constructed by E.ON Climate & Renewables UK, a subsidiary of E.ON SE.
Located 13 kilometres off the UK Sussex coast, at its nearest point, the project is backed by revenues from the UK’s fixed price Renewable Obligation Certificates program and a 15-year power purchase agreement. The project comprises of 116 sets of Vestas’ 3.45MW turbines. Construction of the wind farm began in September 2015 and is expected to be fully operational in 2018.
“Offshore wind is a natural next step for Enbridge’s significant wind business,” said Enbridge President and Chief Executive Officer Al Monaco. “We have a well-established renewables business and growing expertise in wind power technology, construction and operations and this project provides an attractive opportunity to partner with E.ON, an industry leading constructor and operator of offshore wind projects, and Green Investment Bank with its experience of supporting offshore wind ventures. Further developing our expertise in this business will position Enbridge to participate in future offshore developments.”
Under the terms of the agreement, Enbridge will become one of three shareholders in Rampion Offshore Wind Limited which owns the project. The UK Green Investment Bank holds a 25% interest, and E.ON will retain the balance of 50.1%.
E.ON will manage construction of the project.