Humber Gateway offshore wind farm, UK. Tristan Stedman / RWE; cropped. File photo, not the Vanguard projects.
KKR and RWE have closed financing for two offshore wind farms off Britain’s Norfolk coast, moving ahead with projects representing about £12 billion in total investment, the companies announced Wednesday.
The Vanguard West and Vanguard East projects will have a combined capacity of 2.8 gigawatts. RWE said the investment covers the wind farms and their associated transmission infrastructure.
KKR has completed the purchase of a 50% stake in each project, creating the equal partnership announced in January. Both partners are committing equity, while RWE will lead construction and delivery on behalf of the joint venture.
According to RWE’s announcement, 35 international banks are providing £11.1 billion in cash facilities and £1.7 billion in ancillary facilities. RWE described the package as the largest project financing yet secured for UK offshore wind.
The financing includes a £1 billion commitment from Britain’s National Wealth Fund, with credit cover from Germany’s Euler Hermes and Denmark’s EIFO. It is structured as non-recourse project financing.
Each wind farm will have capacity of 1.4 gigawatts and will sit between 50 and 80 kilometres off the coast of Norfolk in eastern England. Offshore construction is expected to begin in early 2027, with Vanguard West’s first foundations planned for the first half of that year, followed by Vanguard East.
Both projects are expected to be fully commissioned in 2030. RWE estimates their output could supply the equivalent of about three million UK homes.
Onshore cable and substation work is already well advanced, the company said. The projects secured 20-year inflation-linked Contracts for Difference in January, at a strike price of £91.20 per megawatt-hour in 2024 prices. Those contracts give developers a reference price for the electricity they produce, helping support the long-term investment.
JBizNews Desk | London
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