SSE Renewables and Equinor have reached financial close on the third 1200MW phase of the 3600MW Dogger Bank offshore wind farm.
Financial close on Dogger Bank C has been reached through the financing support of a group of lenders comprising 28 banks and three export credit agencies (ECAs).
GE Energy Financial Services partnered with the co-sponsors to support insurance cover for the project finance debt package from Bpifrance, the French export credit agency, which insured a portion of the ECA debt financing.
Taken in aggregate with the financing last year of Dogger Bank A and C, reaching financial close on all three phases of the project is the largest offshore wind project financing to date globally, the developers said.
Total investment in Dogger Bank will be around £9bn, of which around £3bn is for phase C, including offshore transmission capex in the range of £900m to £1bn.
Dogger Bank C will be equipped with 87 GE Haliade-X 14MW turbines, the first in the world to operate at 14MW.
GE Renewable Energy said financial close “cements the order for Dogger Bank C” and brings the total number of Haliade-X units to be installed at Dogger Bank to 277.
SSE chief executive Alistair Phillips-Davies said: “Construction is well underway on the first two phases of Dogger Bank with work on the third phase already progressing and we look forward to this ramping up in the New Year.
“As well as providing clean, green power, Dogger Bank is enabling the planned GE blade manufacturing plant in Teesside and a huge number of direct and indirect jobs.”
Equinor new energy solutions executive vice president Pal Eitrheim said: “The extensive interest from lenders underpins the attractiveness of UK offshore wind assets and the confidence in SSE and Equinor as developers.”
Dogger Bank C is being project financed with gearing of 70% for the generation assets.
Gearing on the transmission facilities is set at 90% of the forecast OFTO sale proceeds, in line with standard market practice in the sector.
Total senior debt facilities is around £2.5bn plus ancillary facilities of around £435m.
Dogger Bank A and B is a joint venture between SSE Renewables (40%), Equinor (40%) and Eni (20%).
On 2 November, SSE and Equinor announced the sell down of a combined 20% share in Dogger Bank C to Eni (10% each) for a total consideration of £140m.
The transaction is expected to close in early 2022, subject to regulatory and lenders approvals and customary purchase price adjustments.
Eni will enter the asset effective from completion of the sell down transaction.
Once the transaction is complete, the new overall shareholding in Dogger Bank C will be SSE Renewables (40%), Equinor (40%) and Eni (20%).