The various consortium partners developing the Sheringham Shoal and Dudgeon offshore wind farms extensions have agreed to bring the two projects under a joint ownership structure in one legal entity.
The new ownership structure enables a cost-effective joint development of the two projects (picture of operational Dudgeon offshore wind farm) whilst minimising environmental and local impact in Norfolk.
By aligning the partnership to merge the two joint ventures behind each project, a simplified and collaborative model will “help unlock further opportunities whilst simultaneously derisking development for both generation and transmission”.
Development consent approval for both projects was obtained in April 2024 which was the first time in the UK that two offshore wind projects under separate ownership were awarded consent under a shared application.
The consent allowed for single, joint or sequential development options.
The Dudgeon Extension Project is owned 35% by Equinor, 35% by Masdar and 30% by China Resources Power, whilst Sheringham Shoal Extension Project is currently 100% owned by Equinor, with Equitix Offshore 3 Limited (co-owned by funds managed by Equitix and The Renewables Infrastructure Group (TRIG)) and Macquarie Asset Management (via Macquarie GIG Renewable Energy Fund 1) having options to acquire a total of 60% interests at final investment decision (FID).
Halfdan Brustad, Equinor’s vice president of UK Renewables, said: “Drawing on our experience of oil and gas unitisation, we have applied key learnings to make this project more competitive, ensuring economic efficiencies and cost savings.
“By developing one project instead of two, we can unlock additional value from volume at scale, whilst sharing joint infrastructure, maximising local benefits and minimising disruption.”
Husain Al Meer, Masdar’s Director of Global Offshore Wind and UK Operations, said: “The establishment of this Joint Venture will streamline operational efficiencies, and in doing so, accelerate the development of additional offshore wind capacity for the British economy – a crucial contribution to meeting the UK’s ambitious clean energy targets, and enhancing energy affordability, resilience, and security.
“We look forward to working closely with stakeholders and partners through the next stages of the project.”
A spokesperson for the option holders, Equitix, TRIG and Macquarie Asset Management said: “We support this innovative merger of the Sheringham Shoal and Dudgeon extension projects; it is an important development that will
support the UK’s transition to net zero, as well as delivering more competitive energy prices and greater energy security.”
Project partners will continue to mature the development toward FID.