The UK Green Investment Bank plc (GIB) has today announced the acquisition of a £236m stake in the 400MW Rampion Offshore Wind Farm.
- The UK Green Investment Bank plc (GIB) has acquired a £236m stake in a joint venture with E.ON to construct and own the Rampion offshore wind farm, off the coast of Brighton.
- The project will now commence construction.
- The development is expected to generate 1,333 GWh of renewable energy annually, enough to power approximately 300,000 homes, and reduce greenhouse gas emissions by 4,215 kt CO2e over its lifetime, the equivalent of taking 75,000 cars off the road.
The project has been developed by E.ON, which will continue to own the remaining shares in the joint venture.
Rampion will be constructed 13km off the Sussex coast in the English Channel. It is expected to generate 1,333 GWh of renewable electricity annually once operational; equivalent to the electricity consumption of approximately 300,000 homes.
The wind farm is also forecast to reduce greenhouse gas emissions by 4,215 kt CO2e across its 25-year lifetime, equivalent to taking 75,000 cars off the road.
Around 300 jobs will be created during the anticipated three-year construction phase of the project. Up to 65 permanent full-time employees will be required to oversee operations and maintenance once the wind farm has been commissioned.
E.ON is the world’s third largest offshore wind operator having completed the construction of seven offshore wind farms totalling 1.2 GW, with another 507 MW currently under construction.
This is GIB’s seventh investment in the UK’s offshore wind sector. Once these projects are operational they will provide over 2,500 MW of renewable electricity generation capacity, enough to power more than two million homes.
Last month, GIB’s subsidiary UK Green Investment Bank Financial Services Limited also announced that it had reached first close on the world’s first offshore wind fund, designed to attract new investors to the UK.
GIB was advised by Slaughter and May, DNV GL, PwC and Willis.
Shaun Kingsbury, Chief Executive, UK Green Investment Bank, said:
Our investment gives the developer the confidence to begin construction on this important offshore wind project, boosting UK energy supply and generating enough power annually for around three hundred thousand homes.
Secretary of State for Energy and Climate Change, the Rt Hon Amber Rudd MP, said:
This huge investment is a vote of confidence in the UK, creating local jobs, bringing business opportunities and providing clean, home-grown energy. The UK is the best place in the world to invest in offshore wind, thanks to the certainty the Government is able to provide to attract private finance in partnership with the Green Investment Bank.
Tony Cocker, UK Chief Executive, E.ON, said:
This is an important milestone for what is a strategically important project for the UK. At around £1.3bn this investment by E.ON and our partners at the UK Green Investment Bank could be one of the biggest capital projects confirmed in Britain this year and we are proud of the leading role we are continuing to take in helping transform the UK’s energy infrastructure.
Addendum: GIB’s investment was subsequently increased to a 25% stake in the project, valued at £306m. This two-stage process was a result of GIB securing the necessary authorisation from the UK Government to make a single investment larger than £300m.
About the project
Total project capacity: 400 MW
Total GIB investment: £306m
Energy generation: 1,333 GWh per annum
Operational date: September 2018
Technology: 116 Vestas V112-3.45 MW wind turbine generators; monopile foundations
Notes to editors
About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) 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.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited is authorised and regulated by the Financial Conduct Authority.
E.ON is an internationally privately-owned energy supplier and will in future be focussing entirely on renewables, energy networks and customer solutions. In the 2014 financial year, more than 58,000 employees based in many countries in Europe as well as in Russia and North America generated sales of around EUR 112 billion. Around 33 Million customers purchase gas and electricity from E.ON. The E.ON Group is run by Group Management in Düsseldorf, Germany.