Total has entered into an agreement with SSE Renewables, to acquire a 51 per cent stake in the 1,140 MW Seagreen 1 offshore wind farm project for an upfront payment of £70 million and earn-outs up to £60 million subject to performance conditions. The project has reached a final investment decision and financial closing. Total has secured close to 70 per cent of external financing for its 51 per cent stake. The agreement also covers a potential capacity extension opportunity of up to 360 MW.
The offshore wind project is located 27 kms from the Scottish coastline of the North Sea. The project has secured all necessary major permits. The onshore construction had begun in the first quarter of 2020. The project is designed to cover the energy needs of around 1 million homes and will start producing renewable electricity by the end of 2022. Once completed, it will be Scotland’s largest offshore wind farm. The project will be built at a cost of around $3.7 billion.
Patrick Pouyanné, chairman and CEO of Total said, “Total builds up a strong position in the world’s largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the UK North Sea. This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity.”