New lenders bring financial calm to Westermost Rough wind farm development

 

The ship is called the Innovation and its jack up platform was used to install 35 monopile foundations and transition pieces off the North Yorkshire coast approximately five miles from landfall. All foundations have been installed successfully and wind turbines will be installed on each transition piece.  First load out of three turbines took place in early August 2014
The ship is called the Innovation and its jack up platform was used to install 35 monopile foundations and transition pieces off the North Yorkshire coast approximately five miles from landfall. All foundations have been installed successfully and wind turbines will be installed on each transition piece. First load out of three turbines took place in early August 2014

By Our Business Correspondent, Scottish Financial News

Edinburgh-based Green Investment Bank and Japan’s Marubeni congomerate have refinanced part of their 50% shareholding in the 210 MW Westermost Rough offshore wind project.

The project is being developed by DONG Energy, which holds the remaining 50% equity in the project.

GIB and Marubeni bought their 50% equity stake in the project in March for £500m. The project, currently in construction off the coast of Yorkshire, will see the first commercial deployment, anywhere in the world, of Siemens 6 MW direct drive turbines.

GIB and Marubeni – which owns Smartest Energy – have now signed an agreement with a consortium of lenders who will provide £370m of limited recourse senior debt.

The lenders include the Japan Bank for International Cooperation; The Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, Siemens Financial Services and France’s Societe Generale.

Ed Northam, GIB Head of Investment Banking, said: “In refinancing part of our 50% equity stake in the Westermost Rough project – we have brought in a number of new, long-term financiers to the sector.

“Increasing the number of long-term debt providers in offshore wind is critical in both ensuring there is sufficient capital to finance new construction projects and lowering the cost of capital for the sector.

“This is exactly the type of financial innovation needed to support the ongoing growth of the UK’s green economy.”

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed