New Partner as Seagreen Project Gets Green LightNeil Hardie
Scotland’s largest offshore wind farm has taken a major step forward, reaching financial close with a new majority owner.
Global oil and gas firm Total has acquired a 51% stake in the Seagreen offshore wind farm development from SSE Renewables.
Perth-based SSE Renewables will continue to lead on the development and construction of the project, supported by Total, and will operate the asset on completion, which is expected in 2022/23.
The 1,075 megawatts development, located 27km from the Angus coastline, could potentially meet the energy needs of a million homes.
Total has acquired its stake in the project for an upfront payment of £70 million and earn-outs of up to £60m subject to performance conditions.
SSE chief executive Alistair PhillipsDavies said: “Seagreen will make a significant contribution to the UK’s green recovery from coronavirus by unlocking £3bn of low carbon investment and generating the low carbon power we need to reach net zero.
“Total’s extensive global experience in the offshore environment combined with their clear ambition to contribute to the development of renewable energy worldwide is a strong fit with SSE Renewables’ strategic objective to treble our renewable output by 2030.”
The total investment of the project is around $3.7 billion. Seagreen will start producing renewable electricity from end of 2022.
Total chairman and chief executive Patrick Pouyanné said: “This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity.”
Last week a deal was struck to allow part of Carnoustie’s world-famous golf links to be used for cabling to connect to an onshore substation in Tealing.
SSE Renewables has also confirmed it has completed and signed a contract with MHI Vestas Offshore Wind to provide the 10MW turbines.
A 15-year service and maintenance agreement will see MHI Vestas run its operations out of Montrose Port, which has previously been announced as the home to the operations and maintenance base for the 25-year life of the wind farm.
SSE Renewables managing director Jim Smith said: “The presence of MHI Vestas at Montrose is going to be a massive catalyst for sustained economic growth in the region.”
Meanwhile, Seaway 7 will create up to 50 jobs in Aberdeen thanks to a contract to install the turbine foundations and inter-array cables for the wind farm project.