Construction News

Fri March 29 2024

Related Information

Offshore wind sector gets £461m from green bank

1 Apr 14 The UK Green Investment Bank (GIB) has announced two equity investments, totalling £441m, in the UK offshore wind sector.

It is investing alongside Japan's Marubeni Corporation in the joint purchase of a 50% stake in the Westermost Rough offshore wind farm, from Dong Energy. It is the first time that GIB has taken construction risk in an investment. The Westermost Rough project, currently in the early stages of construction off the coast of Yorkshire, will use Siemens' next-generation 6 MW direct drive turbines which are almost twice the size of the majority of wind turbines operating in UK waters. Once operational, Westermost Rough will generate over 800GWh of net renewable electricity, equivalent to the electricity consumption of about 200,000 homes.

GIB has also agreed to acquire a 10% stake in the Gwynt y Môr offshore wind farm, from RWE Innogy. The purchase price is £220m. The project, off the coast of north Wales, is in the late stages of construction. Gwynt y Môr is the largest offshore wind farm under construction in Europe. Once operational it will generate over 1,700 GWh of net renewable electricity each year. This is equivalent to the electricity consumption of about 400,000 households.

The proceeds of both sales are expected to be reinvested back into renewable energy projects in the UK.

Related Information

Shaun Kingsbury, chief executive, UK Green Investment Bank, said: "The UK has ambitious plans to build on its position as a world leader in offshore wind. We have two roles to play in supporting those plans. Firstly, to directly invest to help developers recycle their capital into the next wave of new renewable energy projects. Secondly, to invest on fully commercial terms to create a demonstration effect which others will follow."

These investments are part of a strategy, led by GIB, to mobilise capital into the UK offshore wind industry.

UK business secretary, Vince Cable, said: "The Green Investment Bank is playing a game-changing role in financing our transition to a green economy. The Bank has now invested well over £600 million in five offshore wind farms and mobilised £1.3 billion of total funding. This industry has the potential to generate thousands of new skilled jobs and billions in business investment.”

Got a story? Email news@theconstructionindex.co.uk

MPU
MPU

Click here to view latest construction news »