Dong Energy has acquired a 66.66 per cent stake in the Hornsea Project One offshore wind farm from its joint venture partner Smart Wind, giving it full ownership of the project.
The deal follows consent for the construction of the 1.2 GW wind farm being granted in December 2014. Dong says it will now continue to develop the project on its own towards a final investment decision.
Hornsea Project One is located 120 km off the northeast coast of England and covers approximately 407 km2. Dong entered a joint venture with Smart Wind - a partnership owned by Mainstream Renewable Power and Siemens Financial Ventures - in 2011 to develop the project, with an option to purchase Smart Wind's interest once consent had been granted.
Dong says that Hornsea Project One will make an important step towards reducing the costs of offshore wind in spite of the project's size and location far from the coast. "The size of the project and the excellent wind conditions at site together with our strong focus on cost will make Hornsea one an important milestone towards the 100 Euro/MWh target," said Samuel Leupold, Executive Vice President of Dong Energy Wind Power.
Hornsea Project One is one of three projects for which Dong was awarded a final investment decision enabling contract (contract for difference) by the UK government in April 2014.
The wind farm is expected to start operating in 2020 subject to Dong's final investment decision.
Sian Crampsie
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