Greencoat UK Wind has signed an agreement to acquire a 25 per cent stake in the Burbo Bank Extension offshore wind farm from AIP, in partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital.
Through the acquisition, to be completed on 30 November, Greencoat UK will take a net stake of 15.7 per cent in the wind farm for a total cash consideration of GBP 250 million (approximately 294 million), which will be funded using the company’s revolving credit facility, cashflow and partly by the proceeds of a new equity raise launched on 2 November.
AIP investor PKA holds a 25 per cent equity stake, alongside LEGO investment arm KIRKBI (25 per cent) and Ørsted (50 per cent), following Ørsted’s divestment in 2016.
The 258 MW Burbo Bank Extension, which comprises 32 Vestas 8 MW turbines, is located 7 kilometres offshore Liverpool. Developed and built by Ørsted, the project was fully commissioned in May 2017, when it became the first commercial wind farm to feature 8 MW turbines.
The offshore wind farm has a load factor of 43.8 per cent and benefits from a Contract for Difference (CfD) priced at GBP 176.57/MWh (approx. EUR 207.74/MWh) until 31 March 2032.
Last year, Greencoat acquired a 49 per cent stake in RWE’s Humber Gateway offshore wind farm in the UK, with RWE remaining the majority shareholder and continuing operating the 219 MW wind farm.