Avangrid has closed the sale of the Kitty Hawk North offshore wind lease area off the US east coast to Dominion Energy.
The agreement, which includes the Kitty Hawk North offshore wind lease area and associated assets, is for a sale of approximately $160m, inclusive of a payment of about $3000 per acre for the nearly 40,000-acre lease.
The sale price consists of a lease acquisition payment of $117m and associated development cost reimbursement to Avangrid.
“Closing this transaction is a tremendous development for our key business objectives and strategic priorities, positioning us to pursue new opportunities for investment across our renewables portfolio,” said Avangrid chief executive Pedro Azagra (pictured).
“As we close this sale, focus on delivering on our capital investment plan, and continue the development of Kitty Hawk South, Avangrid is proud of its work to accelerate the clean energy transition in the United States.”
Avangrid retains the ownership and associated rights to the Kitty Hawk South lease, and will continue the development of the area, which it said has the potential to deliver up to 2.4GW of power to North Carolina, Virginia, or other states or private companies.