SSE and Equinor have entered into an agreement to each sell a 10% stake in the 1200MW Dogger Bank C offshore wind project to Eni.
The developers are selling their stakes for an equity consideration of £70m apiece.
Eni will enter the asset effective from financial close of project financing which is expected before end of 2021.
The transaction is expected to close in the first quarter of 2022, subject to regulatory and lenders approvals and customary purchase price adjustments.
The Dogger Bank C phase of the 3.6GW D offshore wind complex won a Contract for Difference in the 2019 auction and is currently 50:50 owned by SSE and Equinor.
On completion, the new overall shareholding in Dogger Bank C will be SSE with 40%, Equinor with 40% and Eni with 20%.
A consistent combination of equity partners across all three phases of the project will enable further synergies across both the construction and operations phase of the Dogger Bank wind farm, SSE said.
SSE Renewables will continue to lead on the development and construction of Dogger Bank, and Equinor will operate the asset on completion.
Equinor executive vice president for renewables Pal Eitrheim said: “With this offshore wind transaction, we continue to demonstrate value creation from Equinor’s renewables business.
“As with Dogger Bank A and B, the divestment in the Dogger Bank C project is in line with our strategy of accessing selective markets early and at scale, leveraging our offshore capabilities to mature and de-risk projects.”
SSE intends to use the proceeds to support the delivery of its net zero-orientated strategy and will set out further details on its capital expenditure plans at its half-year results update on 17 November.
The developer typically sells down stakes to retain 30-40% equity in an offshore wind project for multiple reasons.
SSE finance Gregor Alexander director said: “The sale of a stake in Dogger Bank C to Eni represents good value for shareholders and will enable us to continue to recycle capital into creating more low-carbon electricity assets.”