Business
SSE CONFIRMS SALE OF STAKE IN DOGGER BANK C
SSE CONFIRMS SALE OF STAKE IN DOGGER BANK C.
About this update from Sse Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0597R\n SSE PLC\n 02 November 2021\n \n \n \n \n SSE CONFIRMS SALE OF STAKE IN DOGGER BANK C AS IT GEARS UP FOR FURTHER RENEWABLES ACCELERATION\n \n \n SSE has entered into an agreement to sell a 10% stake in Dogger Bank C to Eni for an equity consideration of £70m. \n \n \n Dogger Bank will be the world's largest offshore wind farm when completed and remains on track, including reaching Financial Close by the end of 2021 for the 1.2GW Dogger Bank C phase which won a CfD in the 2019 auction and is currently jointly owned 50/50 by SSE and Equinor. \n \n \n Equinor has also sold a 10% stake to Eni as part of this transaction, so once complete, the new overall shareholding in Dogger Bank C will be - SSE (40%), Equinor (40%) and Eni (20%). The transaction is expected to complete by Q1 2022 subject to regulatory approvals and customary purchase price adjustments. \n \n \n A consistent combination of equity partners across all three phases of the project will enable further synergies across both the construction and operations phase of the Dogger Bank wind farm. \n \n \n SSE Renewables will continue to lead on the development and construction of Dogger Bank Wind Farm, and Equinor will operate the asset on completion. SSE intends to use the proceeds to support the delivery of its net zero-orientated strategy and will set out further details on its capital expenditure plans at its half-year results update on 17 November. \n \n \n SSE's strategy is to create value for shareholders and society in a sustainable way by developing, building, operating, and investing in the electricity infrastructure and businesses needed in the transition to net zero. SSE typically sells down stakes to retain 30-40% equity in an offshore wind project for multiple reasons. It enables partners to bring their specific capabilities to bear at the optimal point in the project lifecycle for their contribution and risk appetite, while facilitating capital recycling into low-carbon electricity asset growth options and securing developer premiums to realise early value. It also reduces the overall risk exposure on large-scale projects and avoids a large increase in net debt that is not earning. \n \n \n \n Gregor Alexander, SSE's Finance Director, said:\n \n \"SSE welcomes Eni as an industrial partner to the Dogger Bank...