Greencoat UK Wind PLC (LSE:UKW) has bought a stake in the London Array offshore wind farm, off the coast on Kent.
Alongside specialist fund manager Schroders Greencoat LLP, the company has bought 25% of the 630MW, 175 turbine wind farm for £717mln, a Monday statement said.
“We are delighted to invest in London Array,” Greencoat UK Wind chair Lucinda Riches commented. “The transaction […] reflects the company's ability to continue to generate significant shareholder value through selective off-market investments.”
RWE (ETR:RWE) operates and owns 30% of the farm, which earns two renewable obligation certificates per megawatt hour of energy produced that can be sold with fossil fuel generators.
Fund manager CDPQ and UAE-owned renewable firm Masdar also own 25% and 20% of the London Array site respectively, which was commissioned in May 2013.
Greencoat also noted that its cash balances sat at £499mln as of June 30, 2023, with the investment expected to cost the firm £394mln in equity and £50mln from loans once completed by the end of July.