50/50 joint venture will see two firms join forces in bid to get three of the four Dogger Bank wind projects to financial close
UK energy supplier SSE has today formally confirmed the creation of a new joint venture with oil giant Statoil, under which the two companies will work together to get three wind projects in the Dogger Bank development through to financial close.
In March the two companies bought up Statkraft’s 25 per cent share in the Dogger Bank development, taking their stakes to 37.5 per cent each, with Innogy owning the remaining 25 per cent.
Dogger Bank consists of four consented wind projects, totalling 4.8GW in capacity. The joint venture will work on getting Dogger Bank Creyke Beck A, Dogger Bank Creyke Beck B and Dogger Bank Teesside A – in total 3.6GW of new wind capacity – to financial close. Innogy will progress the remaining project, Dogger Bank Teesside B.
“SSE is delighted to partner with Statoil to progress the three Dogger Bank Projects,” Mike Seaton, director of development at SSE, said in a statement. “Each project represents a significant offshore development in its own right. We’re looking forward to working closely with Statoil to consider all of the options available to us in order to develop these projects further.”
SSE said the Forewind consortium of Statkraft, Statoil, SSE and Innogy, which originally developed the Dogger Bank projects, will no longer be involved.
The projects are likely to be in the running for government auctions of price support contracts, the results of which are expected next week. Expectations are high that the auction prices will come in well below forecasts thanks to technical innovations and improvement in project management.