Essen,
31
August
2018
|
16:45
Europe/Amsterdam

Triton Knoll Offshore Wind Project achieves Financial Close

  • Equity and bank arrangements secure financing of Triton Knoll
  • Planned investment volume amounts to approx. £2 billion
  • Turbine supply contract agreed with MHI Vestas and UK turbines construction port unveiled
  • Commissioning of offshore wind farm expected to start in 2021

innogy SE today announced that Triton Knoll Offshore Wind Farm has achieved Financial Close with all debt required now fully committed by the project lenders. Total planned investment volume amounts to approximately £2 billion. The offshore wind project is now poised to forge ahead into full construction of the onshore electrical system in September.

The project’s required investment will be provided from international commercial lenders: A consortium of 15 banks are providing around £1.751 billion debt facilities, securing the realisation of the 860MW offshore wind farm, located 20 miles off the coast of Lincolnshire. The lending group includes Sumitomo Mitsui Banking Corporation, ABN AMRO Bank N.V., MUFG Bank, Ltd., KfW IPEX-Bank, ING Bank N.V., Landesbank Hessen-Thüringen Girozentrale, Natixis, Bayerische Landesbank, National Westminster Bank Plc, Lloyds Bank plc, Skandinaviska Enskilda Banken AB, Commerzbank Aktiengesellschaft, BNP Paribas, Landesbank Baden-Württemberg and Banco Santander S.A., London Branch. MUFG Bank Ltd acted as financial and Linklaters LLP as legal advisor to the project.

Hans Bünting, Chief Operating Officer Renewables of innogy SE
“By reaching Financial Close, we have created the financial foundation for realising and operating the Triton Knoll offshore wind farm jointly with our new equity partners and international lenders. I am very much looking forward to onshore construction starting shortly and seeing the investment come to fruition, with significant benefits to the local economy and businesses.”
Hans Bünting, Chief Operating Officer Renewables of innogy SE

Two Japanese utilities are new partners of Triton Knoll Offshore Wind Farm

In mid-August, innogy confirmed two new partners with whom it will take the Triton Knoll project forward, in line with the company’s strategy of growing its renewables portfolio through partnerships (see press release https://news.innogy.com/innogy-finds-new-partners-for-its-triton-knoll-offshore-wind-farm/). J-Power will take a 25% share, and Kansai Electric Power a 16% share, while innogy retains the majority equity stake of 59% and will manage the construction, operation and maintenance works on behalf of the project partners.

Agreements with main suppliers in place – including the turbine supply contract with MHI Vestas

In readiness for construction, all contracts with main suppliers are now being executed. The main suppliers are: MHI Vestas, 3SF (Sif Netherlands B.V. and Smulders Projects Belgium N.V), NKT and Boskalis Subsea Cables and Flexibles (previously VBMS), GeoSea, J Murphy & Sons, Siemens Transmission and Distribution, Seaway Heavy Lifting. At the heart of the project, Triton Knoll will install 90 of MHI Vestas’ V164-9.5 MW turbines, currently considered to be amongst the most powerful and efficient in the world. The turbine supply agreement will see MHI Vestas establish a full-scale turbine pre-assembly operation at Able UK’s Seaton Port in Teesside, where the port works alone could support over 100 mostly regional jobs and secure up to £16million new investment in the port facilities.

Construction of onshore electrical system to begin imminently

Once fully operational, Triton Knoll Offshore Wind Farm will be capable of supplying the equivalent of more than 800,000 UK households p.a. with renewable electricity. Initial enabling works are already underway at the site of the project’s onshore electrical system, which includes a 57 km underground cable route, landfall site and construction of a new onshore substation at Bicker Fen, in Lincolnshire. Full construction of the onshore electrical system is on schedule to begin in September. Offshore construction is then expected to start in late 2019/early 2020 and commissioning of Triton Knoll is expected to start in 2021.

Power Purchase Agreement signed

A 15-year Power Purchase Agreement (PPA) was agreed with Ørsted, under which the company will offtake 100% of the power produced by Triton Knoll wind farm. The PPA complements Triton Knoll’s Contracts for Difference (CfD), mitigating any market price uncertainty for the first 15 years of the wind farm’s operation (for details please see our press release here: https://news.innogy.com/power-purchase-agreement-signed-for-triton-knoll-offshore-wind-farm-project).

For more information about the project, please visit the Triton Knoll website: www.tritonknoll.co.uk.

[1] Excluding ancillary facilities

 

Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.