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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Norwegian energy major Statkraft AS (Oslo, Norway) is looking at selling off its stakes in up to 1.5 gigawatts (GW) of offshore windfarm projects located in U.K. waters.
The company said it is preparing a 'possible' divestment of shares in the 317-megawatt (MW) Sheringham Shoal offshore windfarm, along with Dudgeon (402 MW) and Dogger Bank (4.8 GW). The company's combined holdings come to 1.47 GW of generating capacity. The windfarms are either consented or under-construction off the east coast of the U.K.. It said it plans to keep its stake in the 900-MW Triton Knoll project.
Statkraft said that it will divest its 40% stake at Sheringham Shoal off the coast of Norfolk to project partner and fellow Norwegian company Statoil ASA (NYSE:STO) (Stavangar, Norway) and that a letter of intent has already been signed. The U.K. state-owned Green Investment Bank holds the remaining 20% stake. Statoil will also take Statkraft's 25% in the giant 4.8-GW Dogger Bank project. Industrial Info reported last August on the proposed doubling in size of the world's largest offshore windfarm development at Dogger Bank. For additional information, see August 11, 2015, article - World's Largest Planned Windfarm Doubles in Size.
Steinar Bysveen, executive vice president at Statkraft, said: "We're currently re-evaluating all of our existing offshore wind assets, with the exception of Triton Knoll, where we remain committed to working with innogy to develop the project towards an investment decision before bringing in new owners. We welcome the recent consent award for the electrical system from the Secretary of State and together with our partner innogy, our focus now is to ensure the project enters the next Contract for Difference (CfD) auction as one of the most cost competitive offshore wind projects to date."
"Taking over the operatorship for Sheringham Shoal represents a milestone for Statoil, as our first operatorship during commercial operations," added Irene Rummelhoff, Statoil's executive vice president for New Energy Solutions. "As operator of both the Sheringham Shoal and Dudgeon offshore wind farms, located in the same area, we can further improve efficiency and increase competitiveness across the projects."
Earlier this year Statkraft, which is one of Europe's leading renewable power generators, said it was stopping future investments in offshore wind in order to keep paying dividends to shareholders. With European power prices at record lows, Statkraft Chief Executive Officer Christian Rynning-Toennesen, said at the time: "Offshore wind power is capital intensive. The reduced financial terms from the owner entail that it is not possible for Statkraft to invest in new offshore wind projects."
"Regarding the divestments," Bysveen explained, "with Statoil primed to lead operations of the neighbouring 402-MW Dudgeon project and Statkraft evaluating a divestment, it makes sense to transfer the Sheringham Shoal operatorship to Statoil. Statkraft has played an important role in establishing Sheringham Shoal as one of the U.K.'s top-performing offshore windfarms, and have forged strong relationships locally. We are confident these will continue to thrive in the future under Statoil's leadership."
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 said it is preparing a 'possible' divestment of shares in the 317-megawatt (MW) Sheringham Shoal offshore windfarm, along with Dudgeon (402 MW) and Dogger Bank (4.8 GW). The company's combined holdings come to 1.47 GW of generating capacity. The windfarms are either consented or under-construction off the east coast of the U.K.. It said it plans to keep its stake in the 900-MW Triton Knoll project.
Statkraft said that it will divest its 40% stake at Sheringham Shoal off the coast of Norfolk to project partner and fellow Norwegian company Statoil ASA (NYSE:STO) (Stavangar, Norway) and that a letter of intent has already been signed. The U.K. state-owned Green Investment Bank holds the remaining 20% stake. Statoil will also take Statkraft's 25% in the giant 4.8-GW Dogger Bank project. Industrial Info reported last August on the proposed doubling in size of the world's largest offshore windfarm development at Dogger Bank. For additional information, see August 11, 2015, article - World's Largest Planned Windfarm Doubles in Size.
Steinar Bysveen, executive vice president at Statkraft, said: "We're currently re-evaluating all of our existing offshore wind assets, with the exception of Triton Knoll, where we remain committed to working with innogy to develop the project towards an investment decision before bringing in new owners. We welcome the recent consent award for the electrical system from the Secretary of State and together with our partner innogy, our focus now is to ensure the project enters the next Contract for Difference (CfD) auction as one of the most cost competitive offshore wind projects to date."
"Taking over the operatorship for Sheringham Shoal represents a milestone for Statoil, as our first operatorship during commercial operations," added Irene Rummelhoff, Statoil's executive vice president for New Energy Solutions. "As operator of both the Sheringham Shoal and Dudgeon offshore wind farms, located in the same area, we can further improve efficiency and increase competitiveness across the projects."
Earlier this year Statkraft, which is one of Europe's leading renewable power generators, said it was stopping future investments in offshore wind in order to keep paying dividends to shareholders. With European power prices at record lows, Statkraft Chief Executive Officer Christian Rynning-Toennesen, said at the time: "Offshore wind power is capital intensive. The reduced financial terms from the owner entail that it is not possible for Statkraft to invest in new offshore wind projects."
"Regarding the divestments," Bysveen explained, "with Statoil primed to lead operations of the neighbouring 402-MW Dudgeon project and Statkraft evaluating a divestment, it makes sense to transfer the Sheringham Shoal operatorship to Statoil. Statkraft has played an important role in establishing Sheringham Shoal as one of the U.K.'s top-performing offshore windfarms, and have forged strong relationships locally. We are confident these will continue to thrive in the future under Statoil's leadership."
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.
