Vattenfall to offload Norfolk Offshore Wind Zone to RWE in £963m deal

Vattenfall, a leading energy company, has reached a landmark agreement to divest its Norfolk Offshore Wind Zone to RWE. The transaction, valued at an enterprise value of £963 million, is a strategic move that ensures the continued development of this significant renewable energy project.

Transforming the UK’s Energy Landscape

The Norfolk Zone, comprising three fully consented wind farms – Norfolk Boreas, Norfolk Vanguard West, and Norfolk Vanguard East – represents one of the world’s largest offshore wind developments. Located off the east coast of England, this zone boasts a total capacity of 4.2 GW, sufficient to power 4 million British households.

Vattenfall to sell Norfolk Offshore Wind Zone to RWE in £963m deal

This agreement with RWE marks a pivotal step for Vattenfall, enabling the company to reallocate resources to projects that align more closely with its portfolio and risk appetite. This divestment is expected to reverse the impairment and provisions reported by Vattenfall earlier in the year.

Vattenfall’s Ongoing Commitment to Renewable Energy

Despite this divestment, Vattenfall remains a significant player in the offshore wind sector. The company recently partnered with BASF to develop the 1.5GW Nordlicht cluster off the coast of Germany. Vattenfall continues to demonstrate its commitment to the UK energy sector, with substantial investments in both offshore and onshore wind capacity, heat networks in major UK cities, and as a leading independent distribution network operator.

Anna Borg, CEO of Vattenfall AB, emphasized the importance of this deal: “The Norfolk Offshore Wind Zone is crucial for the energy transition and reaching net zero. This agreement with RWE is a boon for the UK’s energy security, ensuring the Zone’s continued development to provide clean electricity to over 4 million homes.”

Regulatory Approvals and Future Prospects

The sale of Boreas, Vanguard East, and Vanguard West is pending regulatory approvals and is expected to close in the first quarter of 2024. Until then, Vattenfall will continue to develop Vanguard East and Vanguard West projects, with a transitional service agreement post-closing to ensure continuity.