Greencoat UK Wind Plc has agreed to acquire a net 12.5 per cent stake in the 1.2 GW Hornsea One wind farm in the UK waters for GBP 400 million. Greencoat Capital LLP renewable energy fund will purchase the interest from Global Infrastructure Partners (GIP), which owns Hornsea One in a 50/50 joint venture with Denmark’s Ørsted A/S. The deal is expected to close in the third quarter of 2022. As per the company’s statement, the stake it is set to acquire has an enterprise value of GBP 1.1 billion.
The Hornsea One complex is located 120 km off the coast of Yorkshire, England. It is powered by 174 Siemens Gamesa turbines that started operations in December 2019. The plant is operated by Ørsted, and it has a 13-year inflation-linked contract-for-difference in effect. Greencoat plans to utilise cash flow reserves and its revolving credit facility to fund the purchase. Following the acquisition, the company’s overall operating capacity will rise to more than 1.6 GW.
In April 2022, Greencoat Renewables agreed to purchase a 50 per cent stake in the 312 MW Borkum Riffgrund I offshore wind farm for $383 million in cash. Greencoat Renewables would acquire a 31.5 per cent share from Kirkbi and an 18.5 per cent stake from William Demant Invest as part of the acquisition. Greencoat Renewable’s total installed capacity would increase to 993 MW as a result of the agreement.
