International legal practice, Osborne Clarke has advised leading energy company innogy on its acquisition of Statkraft’s 50 per cent share in the offshore wind project Triton Knoll. With the acquisition of Statkraft’s share, innogy has become the project’s sole owner. Both sides have agreed to maintain confidentiality regarding the purchase price.
Triton Knoll is an offshore wind project with a planned installed capacity of 860 megawatts. Managed by innogy, Triton Knoll has been successfully developed through a joint venture by innogy and Statkraft. On 11 September 2017, the project was awarded a Contract for Difference (CfD) by the UK Department for Business, Energy & Industrial Strategy (BEIS) in the latest auction round to support renewable energy projects.
Hans Bünting, Chief Operating Officer Renewables of innogy SE, commented:
“With full control over Triton Knoll, we will now develop the project further to final investment decision at our own discretion. In due course, we will also review all options regarding the ownership structure of Triton Knoll to maximise value for our company and our shareholders.”
Triton Knoll is one of the most cost-effective and most competitive offshore wind projects of the latest auction in the UK. The strike price awarded is £74.75 per megawatt over 15 years (the strike price is in 2012 prices). The wind farm will be able to supply the equivalent of an expected minimum of 800,000 UK households p.a. with renewable electricity. The planned investment volume amounts to approximately £2 billion (which corresponds to roughly €2.2 billion at the current exchange rate).
The planned wind farm, located 32 kilometres off the coast of Lincolnshire in the east of England, has already been fully consented. The location offers good, proven wind conditions and moderate average water depths of 18 metres.
The final investment decision for Triton Knoll is expected to be made in mid-2018. Until then the financing process will be finalized and contracting agreements completed with the project’s supply chain partners.
In 2018, onshore works are scheduled to begin to provide the grid connection. Offshore construction is expected to start in 2020. According to current planning, commissioning of Triton Knoll is expected in 2021.
The Osborne Clarke team advising on the transaction was led by Partner David Ferris who was assisted by Associate Director Adam Love and Associate Jonny Gait.
Osborne Clarke has an established and well-respected position as one of the leading law firms advising on renewable energy projects and transactions. For over 20 years, it has helped clients to seize new opportunities and meet the challenges of making energy generation clean, affordable and secure. The combination of the team’s experience and understanding of the energy sector means they are regularly called upon to support businesses on all aspects of their commercial, regulatory, corporate, finance and construction legal needs.