SSE sells minority stake in world’s largest wind farm to Eni

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SSE PLC (LON:SSE) said it has agreed to sell a 10% stake in the first two phases of the Dogger Bank Wind Farm to Italian energy firm Eni for GBP202.5mln.

As a result of the sale, SSE said its adjusted earnings per share 2020/21 are forecast to be 85p-90p as opposed to the 75p-85p estimated previously, including an impact from a gain on the sale of around 19p after transaction costs.

READ: SSE achieves financial close for two-thirds of world’s largest wind farm

The FTSE 100 power firm said the divestment is in line with its intention to partner to capitalise on its significant growth opportunities related to net zero.

Deemed the world’s largest wind farm once all three phases are completed, the Dogger Bank project was initially developed in a 50:50 partnership with Norway’s Equinor.

However, Equinor has sold a 10% stake to Eni as well, so SSE and Equinor now both own 40% and their Italian counterpart owns 20%. The transaction is expected to complete in early 2021, subject to regulatory and lender approvals.

There is no change to the ownership of the third phase, in which SSE and Equinor each have a 50% stake, where the FTSE 100 energy firm will lead the construction and its Norwegian peer will operate the asset on completion.

Each phase has a capacity of 1,200 megawatts and will generate around 6,000 gigawatts per hour.

In total, Dogger Bank will produce enough renewable electricity to supply 5% of the UK’s demand, equivalent to powering six million UK homes.

“This transaction will enable us to fund further low carbon growth opportunities, helping to deliver governments’ net zero ambitions and our own target to treble our renewable output by 2030,” Gregor Alexander, SSE’s Finance Director, said in a statement.

Shares advanced 3% to 1,397p on Friday morning.

–Adds shares–

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