Statkraft to sell stake in Dudgeon offshore wind farm to China Resources

Energy acquisition news : A consortium featuring China Resources has agreed to buy Norwegian hydropower company Statkraft‘s 30% stake in the 402MW Dudgeon offshore wind farm off the Norfolk coast in the UK for a sum of £555 million.

A state-owned conglomerate, China Resources has operations across the power, gas, consumer products, pharmaceuticals and other sectors.

The sale by the Norwegian state-owned energy company Statkraft means its exit from the UK offshore wind farm, which it had acquired alongside Statoil from Warwick Energy in 2013.

It can be recalled that the sale of stake in Dudgeon offshore wind farm from Statkraft also comes after its recent deal with investment management firm Equitix to divest its stake of 40% in another UK offshore wind farm – the 316.8MW Sheringham Shoal for a sum of £558 million.

Statkraft has blamed its exit from the offshore wind farms on its limited financial capacity.

Dudgeon Offshore Wind Farm off the Norfolk coast in the UK. Photo courtesy of Statkraft UK Ltd.

With the Dudgeon sale, Statkraft has sold all its holdings in offshore wind and now intends to concentrate on expansion in hydropower, onshore wind, solar, district heating alongside other new renewable energy technologies.

Commenting on the company’s sale of ownership in the Dudgeon offshore wind farm, David Flood – Managing Director of Statkraft UK, said: “As the world leader in the industry, the UK offshore wind market has brought forward cost competitive projects that represent value for UK consumers and investors, alongside ensuring future energy security and decarbonisation.

“We are proud of our contribution and as Europe’s largest generator of renewable energy, Statkraft will continue to play a substantial role in driving forward developments in the renewables industry both in the UK and other markets around the world.”

The Dudgeon Offshore Wind Farm, which only entered into commercial operations recently, is located in Great Yarmouth, about 40kms off the Norfolk coast. Its project cost came to about £1.25 billion.

The Dudgeon Offshore Wind Farm is operated by Statoil which holds a stake of 35%. The other partner in this UK offshore wind farm apart from Statkraft is Masdar, an Arab renewable energy company which holds a stake of 35%.