TRIG buys stake in Sheringham Shoal offshore UK wind farm from Equitix

Energy acquisition news : The Renewables Infrastructure Group (TRIG), a British investment trust has entered into the $1.8 billion worth Sheringham Shoal offshore wind farm in the UK North Sea by buying a stake of 14.7% from investment manager Equitix for a sum of about £80 million.

The investment from TRIG will represent an indirect equity stake in a new joint venture created with funds controlled by Equitix. Recently, Equitix acquired a stake of 40% in the 317MW offshore UK wind farm from Statkraft, the Norwegian state-owned hydropower company in a deal worth £558 million.

For TRIG, the acquisition marks its foray in the offshore wind industry. It also aligns with its strategy of making investments across long-term income-producing assets.

With the Sheringham Shoal offshore UK wind farm investment, the renewable energy infrastructure investment company also gets an opportunity to diversify its portfolio apart from strengthening its ability further to source and put more capital in the offshore wind sector.

Sheringham Shoal wind farm offshore UK in the North Sea. Photo courtesy of Sheringham Shoal.

Commenting on TRIG investment in the Sheringham Shoal offshore wind farm, Helen Mahy – the Chairman of TRIG, said: “In the last few years TRIG and its Managers have evaluated several projects in the offshore wind sector, which has matured into a highly sought-after institutional investment category.

“TRIG’s partnership on Sheringham Shoal, alongside investors with significant experience in renewables and in broader energy markets, represents an ideal first step for TRIG in this space.  The project is accretive to TRIG’s portfolio returns and has the higher 2.0 ROCs per MWh subsidy and a proven operating history.”

Located off the North Norfolk coast, in the Greater Wash area, the Sheringham Shoal offshore wind farm is operated by Norwegian oil and gas giant Statoil which has a stake of 40%. The remainder 20% stake is held by the Green Investment Group Management.

Equipped with 88 wind turbines, each of 3.6MW, the Sheringham Shoal offshore UK wind farm covers the power consumption needs of nearly 220,000 British homes.