Offshore wind

UK Green Investment Bank invests £240m in UK offshore wind sector

27 Nov 2014


  • GIB buys 20% stake in Sheringham Shoal operating offshore wind farm.
  • GIB’s intention is, in time, to transfer the investment to its proposed new Operating Offshore Wind Fund which has the aim of attracting new investors and capital to the UK offshore wind sector.

The UK Green Investment Bank (GIB) has today announced a £240m investment in the UK’s offshore wind sector. The investment is part of a wider strategy, led by GIB, to strengthen the UK offshore wind sector by allowing developers to recycle capital into new projects and by attracting new investors into the sector.

GIB is purchasing a 20 per cent stake from Statkraft and Statoil in Scira Offshore Energy Limited (Scira), the owner of Sheringham Shoal offshore wind farm, for an agreed valuation of £240m.

The 317 MW offshore wind farm has been operating for two years in the Greater Wash area, between 17 and 23 kilometres off the coast of Norfolk. 

Sheringham Shoal generates over 1.1 TWh of net renewable electricity annually, equivalent to the electricity consumption of around 220,000 homes, roughly equating to the domestic demand of the county of Norfolk.

GIB intends, in time, to transfer its stake in the Sheringham Shoal offshore wind farm to the proposed GIB Operating Offshore Wind Fund as a seed asset.

Statkraft and Statoil have further plans for developing offshore wind projects in the UK, including the 402 MW Dudgeon offshore wind project off the Norfolk coast, which is under construction and expected to be in production in 2017.

Shaun Kingsbury, Chief Executive, UK Green Investment Bank said:

 This is an important investment for the UK offshore wind sector in two respects.

Firstly, it allows two strategically important investors, Statkraft and Statoil, to take part of their investment in an operating project and reinvest it in other projects.

Secondly, we intend, in time, to transfer the asset to our proposed Operating Offshore Wind Fund, which is intended to attract new investors and new capital to the UK.

Business Secretary, Vince Cable said:

The UK’s offshore wind sector is incredibly important to the UK, currently supporting 6,000 jobs and contributing millions to the economy each year. Britain leads the world in offshore wind power generation and this latest investment by GIB will cement that position.

The deal would not have happened without the Green Investment Bank - it is at the heart of our industrial strategy to create green jobs and growth.

Olav Hetland, Senior Vice President for Offshore Wind, Statkraft, said:

Statkraft is very pleased to have the UK Green Investment Bank as a new partner in Sheringham Shoal Offshore Wind Farm. As Europe’s leader in renewable energy and a long term investor in the UK, we have firm growth ambitions in the UK’s offshore wind sector. This agreement enables further investments in project development while at the same time maintaining our industrial role as operator of Sheringham Shoal offshore wind farm.

Siri Espedal Kindem, Senior Vice President for Renewable Energy, Statoil, said:

We are very satisfied to have reached an agreement with the UK Green Investment Bank. This agreement is great news for Statoil and Statkraft as it enables us to realise value created through the development and construction phase of the Sheringham Shoal Wind Farm. It also demonstrates that investments in the UK renewable business are attractive.

About the project

Total project capacity: 316.8 MW

Total GIB investment: £240m

Energy generation: 1.1 TWh per annum, equivalent to the electricity consumption of around 220,000 homes, roughly the domestic demand of the county of Norfolk.

Operational date: October 2012

Technology: 88 Siemens 3.6 MW wind turbine generators; monopile foundations

Operator: Statkraft AS

Notes to editors

About the UK Green Investment Bank

The UK Green Investment Bank was launched in November 2012.  With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world.  It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.

About Sheringham Shoal Offshore Wind Farm

The 317 MW Sheringham Shoal Offshore Wind Farm, located between 17 and 23 kilometres off the coast of North Norfolk in the UK, comprises 88 wind turbines and will generate around 1.1 TWh of green energy per annum. This is enough clean energy to power almost 220,000 British homes. Compared to fossil fuels that is a reduction of around 500,000 tonnes of CO² emissions every year. Sheringham Shoal was developed jointly by Statkraft and Statoil through joint-venture company Scira Offshore Energy Limited. This project has drawn on know-how from Statkraft’s expertise in relation to renewable energy and Statoil’s longstanding offshore activities. Statkraft is the operator of the Sheringham Shoal Offshore Wind Farm.

About Statkraft

Statkraft is a leading company in hydropower internationally and Europe’s largest generator of renewable energy. The Group produces hydropower, wind power, gas-fired power and district heating and is a global player in energy market operations. Statkraft has 3600 employees in more than 20 countries.

About Statoil

Statoil is an international energy company with operations in 36 countries. Building on more than 40 years of experience from oil and gas production on the Norwegian continental shelf, Statoil is committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. Statoil is headquartered in Stavanger, Norway with approximately 23,000 employees worldwide, and is listed on the New York and Oslo stock exchanges.


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