Dogger Bank wind farm owners, Equinor and SSE, have announced financial close on the first two phases of the project, representing in aggregate the largest offshore wind project financing to date globally. SSE Renewables is a renewable energy subsidiary of SSE plc, which develops and operates onshore and offshore wind farms and hydroelectric generation in the United Kingdom and Ireland.
“Reaching financial close on the two first phases of Dogger Bank is a major milestone, demonstrating our commitment to profitable growth within offshore wind. The extensive interest from lenders underpins the attractiveness of UK offshore wind assets and confidence in SSE and Equinor. As the wind farm’s future operator, we are proud to take this big step forward in delivering what will be the backbone of a growing wind hub in the North Sea,” says Pål Eitrheim, Equinor’s executive vice president of New Energy Solutions.
The total senior debt facilities across the two phases is GBP 4.8 billion, plus ancillary facilities of around GBP 0.7 billion. Dogger Bank A and B are being project financed with gearing of 65% to 70% for the generation assets. Gearing on the transmission facilities is set to 90% of the forecasted OFTO sale proceeds.
With the strong interest from lenders, Dogger Bank A and B were able to secure competitive terms, despite unprecedented economic circumstances arising from the global coronavirus pandemic. The final group of lenders, comprising 29 banks and three export credit agencies, includes experienced lenders in the sector along with relationship lenders of both SSE and Equinor. The level of interest achieved reflects the quality of the project and enables strong returns on shareholder capital to be delivered.
(Source: Equinor – Image: SSE)