The Renewables Infrastructure Group (TRIG) and Equitix have partnered to acquire a minority stake in the 1.2GW Hornsea One offshore wind farm in the UK from Global Infrastructure Partners (GIP).
The acquisition was backed by investment manager InfraRed Capital Partners Ltd (InfraRed) and chief operating officer Renewable Energy Systems (RES).
The transaction is expected to be finalized at the end of the first half of 2022.
TRIG acquired a 7.8% stake in the project and also noted that its investment is subject to regulatory and lender approvals, which are expected to be received in the coming months.
After the transaction closes, Horsea One will represent approximately 8% of TRIG’s portfolio, by value, the company commented.
The deal comes as TRIG also announced an extension to its revolving credit facility, bringing the total value to £600m.
“This investment is accompanied by an increase in the company’s revolving credit facility and an equity issue. These financing agreements will help fund the acquisition as well as the Company’s construction projects, and provide headroom to pursue an attractive pipeline of opportunities and advance our portfolio diversification strategy,” noted Richard Crawfordof InfraRed Capital Partners.
Located in the North Sea off the east coast of England, Hornsea One is the largest offshore wind farm in the world to date. Developed by Denmark’s Ørsted, the offshore wind farm became fully operational in January 2020.
The project includes 174 Siemens Gamesa wind turbines and is expected to power more than one million homes in the UK.
Hornsea One has implemented an inflation-linked contract for difference (CfD) grant with 13 years remaining.
“Hornsea One is a global flagship project for the offshore wind industry. As with each of TRIG’s four offshore wind investments in the UK, Hornsea One’s inflation-linked grant will contribute to the company’s strategy to balance subsidized and unsubsidized income and deliver sustainable returns to shareholders. », said Crawford.
In 2020, TRIG acquired an indirect 14.3% stake in the 714 MW East Anglia ONE offshore wind farm from Green Investment Group (GIG).
A year later, the company also acquired a 17.5% stake from Copenhagen Infrastructure Partners (CIP) in the 588 MW Beatrice offshore wind farm.
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