Dominion Energy has closed on a transaction to sell a 50% non-controlling interest in the 2600MW Coastal Virginia Offshore Wind (CVOW) commercial project to Stonepeak.
Dominion Energy will retain full operational control of the construction and operations of the project, and Stonepeak will have customary minority rights.
With this transaction, Dominion Energy has now successfully completed its business review debt reduction initiatives.
During the review, the company announced transactions that represent approximately US$21bn of debt reduction.
Robert M Blue, Dominion Energy chair, president and chief executive, said: “We are pleased to partner with Stonepeak on CVOW, which continues to proceed on-time and on-budget, consistent with our previously communicated timing and cost expectations.
“Stonepeak is one of the world’s largest infrastructure investors in large energy projects such as offshore wind, and its financial participation in CVOW will benefit both the project and the people who will rely on electricity from CVOW to keep the lights on and fuel economic growth in the Commonwealth.”
Rob Kupchak, senior managing director at Stonepeak, added:”We are excited to have closed this investment in CVOW, which exemplifies many of the core tenets of essential infrastructure that we invest behind at Stonepeak.
“We look forward to continuing our partnership with Dominion Energy’s talented team to bring what promises to be one of the most impactful energy projects in the United States to commercial operation.”
CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.
At closing, Dominion Energy received proceeds of US$2.6bn, representing reimbursement of approximately 50% of project-to-date capital investment.
Stonepeak will fund 50% of remaining project costs as they are incurred, subject to certain conditions as previously disclosed.