Equinor has entered into an agreement to sell a 25% ownership interest in the Arkona offshore wind farm to funds advised by Credit Suisse Energy Infrastructure Partners AG for a total amount of approximately EUR 500 million.
Currently Equinor holds a 50% interest in the wind farm located in the German part of the Baltic Sea. Following the transaction, Equinor will retain a 25% interest. RWE Renewables (following their takeover of E.ON Climate and Renewables) will remain the operator with a 50 % interest.
“This divestment demonstrates Equinor’s ability to realise value from the development of offshore wind projects. Active portfolio management through the project life cycle is an important part of our offshore wind strategy. Arkona was delivered under budget and on time and has had strong operational performance since start-up. Now the project is de-risked and in the early phase of operations, and we are pleased to welcome Credit Suisse Energy Infrastructure Partners as new partner,” says Pal Eitrheim, executive vice president in New Energy Solutions in Equinor.
“Offshore wind assets with prudent operators such as RWE Renewables are attractive to institutional investors. We look forward to continuing our strong and successful partnership with them,” says Eitrheim.
“We are delighted to invest alongside two of the most experienced offshore wind players in the sector, as well as expanding on our existing relationship with RWE Renewables. Arkona is our first investment in the offshore wind market, a sector we have identified as a key investment priority,” says Roland Dorig, managing partner of Credit Suisse Energy Infrastructure Partners.
Germany is an important market for Equinor, where the company in addition to delivering renewable energy, also is the second-largest supplier of natural gas.
Equinor entered the Arkona project in April 2016. The closing of the transaction is subject to approval by relevant competition authorities and is expected to take place later in Q4 2019 including customary purchase price adjustments.