Equitix, in its consortium with Kyuden International Corporation and Kyushu Electric Power Transmission and Distribution Company, Incorporated, (“Kyuden Group”) confirms it has signed a transaction to acquire the Seagreen Phase 1 offshore transmission assets from Seagreen Wind Energy Limited (SWEL).
The offshore transmission assets comprise of subsea export cables, onshore export cables, an offshore substation and an onshore substation. Equitix and Kyuden Group will own, operate and maintain this critical infrastructure asset for a 24-year period under the terms of a transmission license granted by the Office of Gas and Electricity Markets (Ofgem).
The Seagreen Phase 1 offshore wind farm is Scotland’s largest and the world’s deepest fixed bottom offshore windfarm, located approximately 27km from the coastline of Angus. The transmission assets will transmit power from the offshore wind farm via three export cables (each approximately 64 km long) to landfall and a further 20 km inland to the onshore substation in Angus
Seagreen OFTO is an important renewable power asset in the UK’s drive for alternative, clean power. With a maximum installed capacity of 1,075MW, it can generate enough renewable power to more than 1.6 million homes (or two-thirds of all Scottish homes). It also has the capability to displace over 2 million tons of carbon dioxide from electricity generated by fossil fuels every year
This offshore transmission project adds to Equitix’s OFTO portfolio, which comprises six OFTO assets capable of transmitting circa 3.5GW of power. Equitix and Kyuden Group are also preferred bidder on the Dogger Bank A OFTO, which is scheduled to reach financial close later this year.
Equitix Chief Investment Officer, Achal Bhuwania said:
“Our investment in Seagreen highlights the hard work and commitment of our team in building long-term partnerships and delivering value for our investors. Equitix’s experience and persistence enabled us to add another OFTO asset to our growing platform, which plays a key role in the UK’s path to a net-zero carbon future.”
Kyuden International Corporation President, Takashi Mitsuyoshi said:
“We are thrilled to collaborate with Equitix on the Seagreen OFTO project, significantly advancing the UK’s renewable energy production. Kyuden Group will continue to expand its business opportunities in the UK and Europe, and work towards the realization of a low-carbon and sustainable society.”
The build of Seagreen was one of the largest construction projects ever undertaken in Scotland. Delivery of the project supported a £1bn-plus economic boost to the Scottish economy during construction, supporting around 4,000 Scottish jobs, according to independent analysis published by PwC.
The acquisition of the transmission assets was financed by equity from Equitix and the Kyuden Group and loans provided by a group of lenders including The Japan Bank for International Cooperation, Sumitomo Mitsui Trust Bank Limited (London Branch), Mizuho Bank, Ltd., and Aviva Life & Pensions UK Limited.
The Seagreen Phase 1 wind farm was developed by SWEL as a joint venture on behalf SSE Renewables, TotalEnergies and PTTEP.
