Greencoat UK to Acquire Stake in Burbo Bank Extension Offshore Wind Farm

Greencoat UK Wind has signed an agreement to acquire a 25 per cent stake in the Burbo Bank Extension offshore wind farm from AIP, in partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital.

Through the acquisition, to be completed on 30 November, Greencoat UK will take a net stake of 15.7 per cent in the wind farm for a total cash consideration of GBP 250 million (approximately 294 million), which will be funded using the company’s revolving credit facility, cashflow and partly by the proceeds of a new equity raise launched on 2 November.

AIP investor PKA holds a 25 per cent equity stake, alongside LEGO investment arm KIRKBI (25 per cent) and Ørsted (50 per cent), following Ørsted’s divestment in 2016.

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The 258 MW Burbo Bank Extension, which comprises 32 Vestas 8 MW turbines, is located 7 kilometres offshore Liverpool. Developed and built by Ørsted, the project was fully commissioned in May 2017, when it became the first commercial wind farm to feature 8 MW turbines.

The offshore wind farm has a load factor of 43.8 per cent and benefits from a Contract for Difference (CfD) priced at GBP 176.57/MWh (approx. EUR 207.74/MWh) until 31 March 2032.

Last year, Greencoat acquired a 49 per cent stake in RWE’s Humber Gateway offshore wind farm in the UK, with RWE remaining the majority shareholder and continuing operating the 219 MW wind farm.

Photo: Vestas (MHI Vestas)