The Renewables Infrastructure Group (TRIG) has announced that it has exchanged contracts to acquire an equity interest of 17.5% in the Beatrice offshore wind farm project in the UK, from Copenhagen Infrastructure Partners (CIP). Beatrice is a 588MW offshore wind farm developed by SSE Plc that is located approximately 13km off the north east coast of Scotland. Beatrice has an established track record, since operations commenced in 2018, and benefits from a Contract-for-Difference (“CfD”) subsidy. Following completion of the transaction, Beatrice will represent approximately 12% of TRIG’s investment portfolio.
The investment, which is subject to regulatory and lender consents that are expected to be received in the coming weeks, is to be financed from a drawdown of TRIG’s recently renewed revolving credit facility. TRIG’s co-shareholders will be SSE Plc (40%), funds managed by Equitix Investment Management Limited (who are also acquiring a 17.5% stake from CIP and is partnered with TRIG on the Sheringham Shoal offshore wind farm), and Red Rock Power Limited (25%).
About the Beatrice offshore wind farm
The Beatrice offshore wind farm is located approximately 13km off the north east coast of Scotland and comprises 84 Siemens 7MW turbines which utilise direct drive technology. The Project has a 15-year maintenance agreement in place with Siemens. The Project’s CfD subsidy fixes the price received for all power generated until 2034, with indexation to inflation. Debt financing on the Project is fixed rate and fully amortising within the subsidy period.
TRIG says that, as has recently been highlighted by the UK Government, offshore wind projects have a significant role to play in the decarbonisation of the UK economy. Furthermore, as well as ongoing economic benefit through the provision of local jobs (with up to 90 roles at the operational base for the Project in Wick, Scotland), the Project provides enough clean energy to power the equivalent of more than 450,000 homes.
Comments from Richard Crawford, of InfraRed Capital Partners
“We are pleased to have the opportunity to invest in this high-quality project developed by SSE, who are a leading generator of renewable electricity in the UK. As investment Manager, InfraRed seeks attractive opportunities for TRIG that increase the robustness of the portfolio, helping to deliver sustainable returns to shareholders from a diversified portfolio of renewables infrastructure. This major acquisition represents a continuation of this investment strategy and will be the Company’s third investment in a UK offshore wind farm and its 5th in the offshore wind sector.”