Total has signed a deal with SSE Renewables to acquire a 51% stake in the Seagreen 1 offshore wind farm project.
The 1,140MW project is located 27km from the coastline in Scottish waters of UK North Sea. Construction began in the first quarter of 2020 and is expected to be completed by the end of 2022.
The $3.7 billion project is the largest offshore wind energy project in Scotland and will power 1 million households.
Total has secured close to 70% of external financing for its 51% stake.
Seagreen 1 benefits from a 15-year Contract for Difference awarded by the UK Government for 454 MW, representing 42% of the total project capacity. An additional 30% of the project capacities will also be contracted under a private CfD with the SSE Group.
Patrick Pouyanne, the CEO of Total, said: “Total builds up a strong position in the world’s largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the UK North Sea. This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity.
“As one of the main actors in the UK energy sector, Total will leverage its extensive expertise in offshore operations and maintenance to contribute to the success of the project alongside country’s leading offshore wind developer, SSE Renewables”.
Alistair Phillip-Davies, the chief executive of SSE, adds: “We are delighted to be partnering with Total to deliver Scotland’s largest offshore wind farm, Seagreen, which will make a significant contribution to the UK’s green recovery from coronavirus by unlocking à‚£3bn of low carbon investment and generating the low carbon power we need to reach net zero.
“Today’s announcement is the result of great efforts by both teams to successfully complete this transaction in the current challenging circumstances. Total’s extensive global experience in the offshore environment combined with their clear ambition to contribute to the development of renewable energy worldwide is a strong fit with SSE Renewables’ strategic objective to treble our renewable output by 2030”.
The transaction will be closed once regulatory approval is granted by July 2020.