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Italy's Eni takes 20% stake in 2.4 GW UK offshore wind farm

Italy's Eni takes 20% stake in 2.4 GW UK offshore wind farm


Italian oil and gas company Eni has taken a 20% stake in Dogger Bank A and B, the two-phase, 2.4 GW offshore wind cluster being developed off the northeast coast of England by Equinor and SSE Renewables, Eni said Dec. 4.

Financial close on the two phases was reached in November. Eni didn't disclose the deal value. Onshore construction is underway, with offshore construction on Dogger Bank A due to begin in Q2 2022. First power is expected in summer 2023 and summer 2024 for Dogger Bank A and B respectively, with commercial operations to follow around six months later.

"For Eni, entering the offshore wind market in Northern Europe is a great opportunity to gain further skills in the sector ... and to make a substantial contribution to [Eni's] 2025 target of 5 GW of installed capacity from renewables," said Eni's CEO Claudio Descalzi.

The acquisition of 480 MW of Dogger Bank wind capacity would also allow Eni "to explore potential synergies with the retail business," the company said.

The three-phase, 3.6 GW Dogger Bank Cluster is the largest offshore wind project in the world, with a projected output of 18 TWh/year.

In September 2019 Dogger Bank was awarded 15-year support under the government's contract for difference (CFD) mechanism.

Dogger Bank A won support at a strike price of GBP39.65/MWh (2012 prices, CPI-indexed) for delivery in 2023-24. Dogger Bank B and C were awarded strike prices of GBP41.61/MWh for delivery in 2024-25.

Dogger Bank A and B will each require total investment of GBP3 billion, including offshore transmission capex of GBP830 million per phase.

Dogger Bank C aims to reach financial close by the end of 2021.

On Nov. 24 the project sponsors announced 15-year power purchase agreements had been signed by Denmark's Orsted (40% share, or 960 MW) and Shell Energy Europe Limited (20% share, 480 MW) relating to the first two phases.

Sponsor offtakers Danske Commodities (20%) and SSE Energy Supply Limited (20% share) had signed offtake contracts on behalf of Equinor and SSE Renewables respectively.

GE Renewable Energy is to supply 190 13-MW Haliade-X turbines to Dogger Bank A and B, using 107-meter blades with a 220-meter rotor diameter.

Eni aims to have 25 GW of renewable energy capacity installed by 2035, rising to 55 GW by 2050.

It was recently awarded a CO2 appraisal and storage license by the UK's Oil and Gas Authority for the Liverpool Bay Area.

Together with BP, Equinor, National Grid, Shell and Total, Eni has formed the Northern Endurance Partnership, which aims to develop offshore CO2 transport and storage infrastructure serving the northeast English industrial clusters of Net Zero Teesside and Zero Carbon Humber.

The two projects plan the capture and storage of CO2 from industrial sites and power plants, and the production of blue hydrogen.

Source: SP Global

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Published: 04-12-2020

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