SSE is exercising its pre-emption right in the sale of Fluor's 50% share in Seagreen Wind Energy, established to develop offshore wind projects in the Firth of Forth Zone. SSE already holds the other 50% share of the joint venture and will purchase Fluor's share for a single payment of £118m. The transaction is subject to approval from Crown Estate Scotland, the public body that manages leasing of Scotland's seabed. The future ownership structure will be further reviewed in the coming months with the view to maximising value for SSE shareholders.
Increasing its share in Seagreen is in line with SSE's offshore wind ambitions and with the Group's broader strategy to create value for shareholders and society from developing, owning and operating energy and related infrastructure and services in a sustainable way, with regulated energy networks and renewable energy at its core.
Seagreen Phase 1, consisting of the 'Alpha' and 'Bravo' projects, is targeting up to 1.5GW of capacity. The project team is seeking amendments to the existing consent (1.05GW) to take advantage of the advances in offshore wind turbine technology since the original consent was granted in 2014. SSE also intends to develop further phases in the Seagreen area.
SSE remains focused on preparing the Seagreen Phase 1 projects in readiness to bid in the upcoming UK contracts for difference (CfD) auction, expected in May 2019.
SSE's share of existing offshore wind assets is significant in terms of volume and profit contribution, with both Walney and Greater Gabbard successfully operating since 2012. SSE's portfolio will be further enhanced by the commissioning of Beatrice next year.
Martin Pibworth, SSE's Wholesale Director, said: 'The Seagreen acquisition aligns with SSE's ambition to create value from owning, operating and developing clean energy assets and infrastructure. We are looking forward to taking full ownership of Seagreen as we progress through this critical phase towards the CfD auction, expected in May 2019. SSE's expertise in the development, construction and operation of offshore wind will be an asset to Seagreen, and we will review the ownership structure in due course.'