German renewable energy company RWE has signed an agreement with Greencoat to sell a 49% stake in the Humber Gateway offshore wind farm in the UK.

Located in the United Kingdom, off the coast of East Yorkshire, the offshore wind farm has an installed capacity of 219MW, powered by 73 Vestas 3MW turbines.

RWE is selling the stake in the wind farm, which was commissioned in 2015, for total of a £648m.

The transaction is expected to be closed by mid-December 2020.

RWE plans to utilise the proceeds to finance further growth in the renewable energy business.

The company targets to expand its renewables portfolio to more than 13GW by the end of 2022, with an investment of €5bn.

RWE stated: “The transaction with Greencoat also demonstrates the attractiveness of the United Kingdom for investment in wind power. The market provides great potential for growth with significant buildout targets.

“This means the UK will play a key role in RWE’s strategy to grow its renewables business and to become carbon neutral by 2040.”

RWE will continue to operate Humber Gateway

With a stake of 51%, RWE will continue to operate the Humber Gateway offshore wind farm.

The stake acquisition is made by Greencoat UK Wind (UKW) in partnership with a number of pension funds investing through a fund also managed by Greencoat Capital.

UKW will acquire a 38% stake in the offshore wind farm for £500m, while the pension funds will acquire an 11% stake for £148m.

UKW chairman Shonaid Jemmett-Page said: “We are delighted to announce our investment in Humber Gateway, a high load factor, ROC accredited offshore wind farm.

“This transaction adds another attractive asset to our portfolio which will stand at 38 wind farm investments, with a generating capacity of 1.2GW.

“We are also very pleased to be able to play our part in the wider development of the wind industry, heralded by recent government announcements, and enabling the continued build out of further offshore generating capacity in the UK.”