Orsted has exercised a long-standing buyback right over the Gunfleet Sands 1 and 2 offshore wind farm, under which it will acquire the remaining 49.9 percent ownership interest from its investment partners for total consideration of approximately £15 million. Orsted currently holds 50.1 percent.
The partners are the Development Bank of Japan and JERA Nex BP, which each hold 24.95 percent. On completion, which is subject to customary closing conditions and expected in November, Orsted will take full ownership of the 172 megawatt asset located 7 kilometers off the Essex coast. The wind farm was fully commissioned in April 2010 with 48 Siemens Gamesa 3.6 megawatt turbines and generates enough renewable electricity to power more than 125,000 UK homes a year.
Orsted said full ownership gives it greater flexibility in managing the asset and assessing future late-life options, including a potential lifetime extension. UK country manager Richard Bodal Hansen said taking full ownership lets the company shape the site’s future and build on the value of an asset it knows well.
The move fits Orsted’s stated focus on maximizing the performance and long-term value of its operating assets. The company runs 12 operational offshore wind farms in the UK supplying about 7 percent of the country’s electricity, with 11 gigawatts of installed offshore capacity and 7.2 gigawatts under construction globally. Orsted said it will continue to assess similar buyback rights and opportunities on a case-by-case basis.