SSE Renewables sanctioned on Wednesday a £3 billion ($3.77 billion) offshore wind project, set to be Scotland’s largest wind farm, Kallanish Energy reports.
The final investment decision and financial close on the Seagreen 1 farm follows the sale of a 51% stake in the project to Total. The French oil major will pay SSE a £70 ($88.1) million upfront payment on completion, plus earn-outs of up to £60 ($75.5) million subject to performance conditions.
The project will produce 1,075 megawatts (MW) of electricity off the coast of Angus, SSE said. But the partners are also eyeing a 360 MW expansion, Total said in a separate statement.
The 10-MW turbines will be supplied by MHI Vestas, with commercial start-up slated for late 2022 or early 2023.
SSE Renewables’ managing director Jim Smith said Seagreen “will contribute towards building a cleaner, more resilient economy as we pursue a green recovery from coronavirus by unlocking £3 billion of low carbon investment, creating green jobs and generating the zero-carbon power we need to reach net zero.”
According to UK’s minister for energy and clean growth, Kwasi Kwarteng, the UK has invested more in offshore wind than any other country and host the world’s largest wind farms.
Offshore wind supplies 10% of the UK electricity demand – “a figure we expect to double by the middle of the decade,” he added.
“Total builds up a strong position in the world’s largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the UK North Sea,” commented Total’s CEO Patrick Pouyanné.
“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,” he added.
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