Greencoat UK Wind PLC has taken a net 12.5% stake in the Hornsea 1 offshore wind farm, completing a deal flagged previously in May.
The stake cost £400mln and gives the specialist wind farm investor an interest in one of the world’s largest offshore wind projects.
Hornsea 1 is 80 miles off the Yorkshire coast in the North Sea and comprises 174 Siemens 7MW turbines and has a grid export capacity of 1,200MW.
The wind farm entered into full commercial operation in December 2019, has a high load factor and benefits from a 15-year CFD at a price of £175.25/MWh (real 2022).
Hornsea 1 is currently 50% owned by Orsted and 50% owned by GIP, with GIP's 50% stake part funded by £2.9bn of limited recourse debt.
UKW's pro rata share of this limited recourse debt is £0.7bn, giving a total enterprise value of £1.1bn for UKW's net 12.5% stake.
Orsted will continue to provide operation, maintenance and management services to the wind farm.
Greencoat said it would fund the acquisition through cash flow and its debt facilities.
Hornsea 1 takes the investment trust's portfolio to 44 operating wind farm investments.