ESB and Red Rock Renewables have reached financial close on the 1080MW Inch Cape offshore wind farm off east Scotland.
The equal joint owners of Inch Cape Offshore Wind Farm announced today that the project has raised more than £3.5bn of project financing.
Terms for the project financing, which includes transmission asset costs, have now been reached with lenders comprising 22 banks.
The offshore wind project, located in the North Sea 15 km off the Angus coast, will now progress into its offshore construction phase.
Inch Cape will be the first UK project to use Vestas 15MW turbines and, once operational, will generate almost 5 terawatt hours (TWh) of energy each year.
It will feature 72 turbines on a mix of monopile and jacket foundations, a single offshore substation platform and two 85 km AC export cables delivering power to an onshore substation under construction at Cockenzie, East Lothian.
Inch Cape Project Director John Hill (centre) said: “I am very proud for the project team – it is a great achievement to reach financial close on the Inch Cape project, which is at the forefront of technology in the offshore wind industry.
“The project is the largest infrastructure project currently in construction in Scotland and will deliver huge quantities of clean low-cost energy once completed in 2027.”
The project will make a significant contribution to UK’s energy security and emissions reduction targets as well as to the economy through use of local suppliers, the developers said.
Inch Cape has, to-date, spent almost £300m with more than 300 UK companies including environmental, technical and engineering design consultancies, civil and structural engineers, survey contractors and project management support.
Paul Lennon (right), head of offshore wind, hydrogen and long-term storage at ESB, said: “Reaching this major milestone of financial close is a significant achievement for ESB, Red Rock Renewables and the whole project team.
“It is testament to the resilience, expertise and capability of the project team, project partners and both shareholders.
“Offshore wind will play a key part in the delivery of ESB’s Net Zero Strategy by 2040 and Inch Cape is an important step along that journey.
“We look forward to entering the main construction phase and safely delivering this project over the coming years.
“Inch Cape will make a significant contribution to the UK climate goals, while creating local jobs.”
Xiaomeng Chen (left), Red Rock Renewables CEO, added: “Reaching financial close is a monumental milestone for Inch Cape, Red Rock and our joint venture partnership with ESB.
“This success is a testament to the efficient design and cutting-edge technologies employed by the project, highlighting our resilience and commitment to making it one of the largest green investments in Scotland while contributing to the UK’s net zero goals.
“I’d like to congratulate and thank the project team, and everyone involved for their dedication and contribution to date.
“We look forward to working with our supply chain partners to deliver a successful and safe offshore construction campaign.”
Inch Cape was first awarded planning consent in 2014 but since then has evolved to incorporate the latest technology and design.
It has secured 15-year contracts with the Low Carbon Contracts Company (LCCC) through the UK Government’s Contract for Difference (CfD) auctions of 2022 and 2024.
Construction of the onshore substation and early landfall works are now underway in Cockenzie, East Lothian, and the offshore substation jacket foundation and offshore platform are nearing completion at Smulders, Wallsend.
Offshore construction is due to begin in Q2 2025 with the start of installation of the export cables and followed by the installation of the offshore platform.
First power is expected in late-2026 and with commercial operation date in 2027.
Inch Cape Offshore Wind Farm is owned by Inch Cape Offshore Wind Limited, an equal joint venture between ESB and Red Rock Renewables.
K2 Management, part of Ramboll, has provided Lender’s Technical Adviser (LTA) due diligence services to the lending consortium financing Inch Cape.