The Renewable Infrastructure Group (TRIG) has exchanged contracts to acquire a further equity interest in the 1200MW Hornsea 1 offshore wind farm (pictured).
It will buy the 2.4% stake in the project off the coast of north-east England, from Global Infrastructure Partners.
Upon completion of this incremental investment, TRIG will hold a 10.2% interest in Hornsea One, with the project representing 9% of TRIG’s portfolio, by value.
Hornsea One is well suited to TRIG’s strategy of balancing subsidised and unsubsidised revenues to deliver sustainable returns to shareholders and aligning with high quality counterparties, the company said.
TRIG added that project benefits from an inflation-linked Contract-for-Difference (CfD) subsidy with 13 years remaining.
The operational management of the wind farm will be carried out by Orsted under a long-term operations & maintenance contract.
Orsted also developed and built the farm using 174 Siemens 7MW turbines.
Hornsea One has demonstrated strong operational performance since operations commenced in 2020, TRIG said.
All required consents have been received in respect of TRIG’s initial investment in a 7.8% equity interest in the project, which will complete this month.
Completion of the incremental investment is expected to occur, following receipt of consents, by the end of Q3 2022.
InfraRed Capital Partners’ Richard Crawford, which advised on the deal, said: “The acquisition of additional investment in Hornsea One, which is currently the world’s largest operational wind farm, exemplifies the Company’s strategy of investing, including the reinvestment of retained profits, in high quality renewables projects which contribute to European energy security and decarbonisation.
“TRIG’s investment commitments into European renewables total in excess of £400m year-to-date, the majority of which has been in the UK.”