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Released January 24, 2017 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--As a growing number of leading oil and gas giants begins to shift into the renewable energy market, the U.K.'s Centrica plc (OTC:CPYYY) (Windsor, England) has completed its exit from the wind energy sector.
The company has announced the sale of its 50% stake in the Lincs offshore windfarm, located 8 kilometres (km) off the east coast of England near Skegness. The share has been sold to the U.K. Green Investment Bank (GIB), established by the government in 2010 to invest in projects and the infrastructure needed to attract major windfarm investment to the country. For related news, see March 25, 2010, article - U.K. Creates £2 Billion Green Investment Bank.
Centrica said that the transaction values 50% of the enterprise value of Lincs at £487 million ($607 million) and, "after repayment of associated debt and other costs, Centrica's net share of the proceeds will be approximately £220 million ($274 million)." Siemens Energy (Erlangen, Germany), which holds a 25% stake in the project, has also agreed to sell its share to the GIB, while DONG Energy A/S (Fredericia, Denmark) will retain its 25% share and take over the operation of the windfarm in the near future.
Lincs is a 270-megawatt (MW) offshore windfarm, comprising 75 Siemens 3.6-MW turbines, which has been operating since 2013.
In 2015, Industrial Info revealed Centrica's plans to exit the wind energy sector and shed 6,000 jobs--10% of its workforce--as the company redirected its investment into energy services and supply. At the time, it had wind energy assets worth roughly £1 billion ($1.24 billion). For related news, see August 5, 2015, article - Centrica Cutting 6,000 Jobs, Exiting Wind Sector.
"The transaction is expected to complete in February 2017," the company stated, "and Centrica will continue to provide operations and maintenance support to Lincs for a 12-month transitional period. The sale completes Centrica's exit from the ownership of wind power generation assets, although the Group will continue to be a major enabler of the development and operation of wind farms through entering into agreements to purchase renewable power."
Karl Smith, managing director of the GIB Offshore Wind Fund said: "This is an attractive asset purchase in the current market and will likely be the final investment for the U.K. GIB Offshore Wind Fund. Lincs joins a portfolio of five other assets, producing returns consistent with those expected from the Fund investors."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The company has announced the sale of its 50% stake in the Lincs offshore windfarm, located 8 kilometres (km) off the east coast of England near Skegness. The share has been sold to the U.K. Green Investment Bank (GIB), established by the government in 2010 to invest in projects and the infrastructure needed to attract major windfarm investment to the country. For related news, see March 25, 2010, article - U.K. Creates £2 Billion Green Investment Bank.
Centrica said that the transaction values 50% of the enterprise value of Lincs at £487 million ($607 million) and, "after repayment of associated debt and other costs, Centrica's net share of the proceeds will be approximately £220 million ($274 million)." Siemens Energy (Erlangen, Germany), which holds a 25% stake in the project, has also agreed to sell its share to the GIB, while DONG Energy A/S (Fredericia, Denmark) will retain its 25% share and take over the operation of the windfarm in the near future.
Lincs is a 270-megawatt (MW) offshore windfarm, comprising 75 Siemens 3.6-MW turbines, which has been operating since 2013.
In 2015, Industrial Info revealed Centrica's plans to exit the wind energy sector and shed 6,000 jobs--10% of its workforce--as the company redirected its investment into energy services and supply. At the time, it had wind energy assets worth roughly £1 billion ($1.24 billion). For related news, see August 5, 2015, article - Centrica Cutting 6,000 Jobs, Exiting Wind Sector.
"The transaction is expected to complete in February 2017," the company stated, "and Centrica will continue to provide operations and maintenance support to Lincs for a 12-month transitional period. The sale completes Centrica's exit from the ownership of wind power generation assets, although the Group will continue to be a major enabler of the development and operation of wind farms through entering into agreements to purchase renewable power."
Karl Smith, managing director of the GIB Offshore Wind Fund said: "This is an attractive asset purchase in the current market and will likely be the final investment for the U.K. GIB Offshore Wind Fund. Lincs joins a portfolio of five other assets, producing returns consistent with those expected from the Fund investors."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
