European energy companies EDP and Engie have announced plans to create a global offshore wind joint venture (JV) by the end of 2019.
Engie chief executive Isabelle Kocher and EDP chief executive Antonio Mexia have signed a memorandum of understanding towards establishing the new 50:50 entity.
Under the terms of the MoU, EDP and Engie will combine offshore wind assets and project pipeline in the newly-created JV.
This will start with a total of 1.5GW under construction and 4GW under development, with the target of reaching 5-7GW of projects in operation or construction and 5-10GW under advanced development by 2025.
The JV will be the exclusive vehicle of investment of EDP, through its subsidiary EDP Renewables, and Engie for fixed and floating offshore wind opportunities worldwide, primarily targeting growth markets in Europe, the US and selected ones in Asia.
The new venture’s aim is to be self-financed and the projects that will be developed will respect the investment criteria of both companies.
EDP and Engie said the aim is for the business to become a global top five player in offshore wind, combining the companies’ combined industrial expertise and development capacity.
The alliance follows EDPR and Engie’s six-year cooperation as consortium partners in the Dieppe Le Treport and Yeu Noirmoutier fixed offshore wind projects in France and Moray East and Moray West in the UK.
The companies are also partners in two floating offshore wind projects in France and Portugal and in the Dunkerque offshore wind tender currently ongoing in France.
Kocher said: “We are delighted to announce this strategic alliance in offshore wind with EDP that we have been partnering with since 2013.
“The offshore wind sector is set to grow very significantly by 2030.
“The creation of this JV will enable us to seize market opportunities while increasing our competitiveness on one of our key growth drivers, renewables and the agreement fully aligns with Engie’s zero-carbon transition strategy.”
Mexia added: “We are confident that this partnership will reinforce our distinctive position in renewables allowing us to accelerate our path in offshore wind, one of the key growth markets in the next decade.”
The deal is subject to respective social, corporate, legal, regulatory and contractual approval processes.