London Array, a joint venture owned by DONG Energy (50%), E.ON (30%) and Masdar (20%), today announced that it has signed an agreement for the sale of transmission assets at the world’s largest offshore wind farm to Blue Transmission London Array Limited.
The divestment takes place pursuant to the Offshore Transmission Owner (OFTO) regime. Following a competitive tender, Blue Transmission London Array Limited was in September 2012 selected by Ofgem as preferred bidder for the London Array offshore transmission licence.
With an asset value of GBP 459 million (DKK 4.1 billion) for the entire transmission assets, this is the largest transaction to date in the OFTO regime. The divestment is expected to close later this month.
Blue Transmission London Array Limited is the licensee entity incorporated by the consortium of Barclays Infrastructure Funds Management Limited and Diamond UK Transmission Corporation (a wholly owned subsidiary of Mitsubishi Corporation), advised by Macquarie Capital.
London Array has been selected by Blue Transmission London Array Limited to provide operations and maintenance services to the transmission link connecting the London Array Offshore Wind Farm to the onshore grid.
London Array is located around 20 km off the coasts of Kent and Essex on a 100km2 site. Its 175 Siemens 3.6MW turbines have a combined capacity of 630MW and are expected to produce enough electricity to power over half a million UK homes each year.
DONG Energy has previously entered into agreements for divestment of the transmission assets for Walney 1, Walney 2, Barrow, and Gunfleet Sands Offshore Wind Farm.
The information provided in this announcement does not change DONG Energy’s previous financial guidance for the 2013 financial year or the announced expected investment level for 2013-2014.
For additional information, please contact:
Rune Birk Nielsen
+45 9955 6543
Allan Bødskov Andersen
+45 9955 9769
DONG Energy is one of the leading energy groups in Northern Europe. Our business is based on procuring, producing, distributing and trading in energy and related products in Northern Europe. DONG Energy has nearly 7,000 employees and is headquartered in Denmark. The Group generated DKK 67 billion (EUR 9.0 billion) in revenue in 2012. For further information, see www.dongenergy.com