Innogy and its partners have reached financial close for the £2bn Triton Knoll offshore wind project located 32km off the coast of Lincolnshire and 45km from the coast of north Norfolk.
The investment required for the wind farm has been secured from a consortium of 15 banks, which provided around £1.75bn debt facilities.
The lending group includes Sumitomo Mitsui Banking Corporation, ABN AMRO Bank N.V., MUFG Bank, Ltd., KfW IPEX-Bank, ING Bank N.V., Landesbank Hessen-Thüringen Girozentrale, and Natixis, among others.
Featuring 90 units of MHI Vestas’ V164-9.5 MW turbines, the 860MW project is jointly owned by Innogy with 59% stake, J-Power with 25% interest and Kansai Electric Power with 16% interest.
Innogy now plans to commence full construction of the onshore electrical system for the wind project in September this year followed by offshore construction in late 2019/early 2020.
From 2021, the Triton Knoll offshore wind farm will be able to generate clean energy required to power equivalent of more than 800,000 UK households per year.
Innogy Renewables chief operating officer Hans Bünting said: “By reaching Financial Close, we have created the financial foundation for realising and operating the Triton Knoll offshore wind farm jointly with our new equity partners and international lenders.
“I am very much looking forward to onshore construction starting shortly and seeing the investment come to fruition, with significant benefits to the local economy and businesses.”
For the project development, Innogy has also awarded contracts to main suppliers which include MHI Vestas, 3SF, NKT and Boskalis Subsea Cables and Flexibles, GeoSea, J Murphy & Sons, Siemens Transmission and Distribution, and Seaway Heavy Lifting.
As part of the turbine supply deal, MHI Vestas has agreed to establish a full-scale turbine pre-assembly operation at Able UK’s Seaton Port in Teesside.
Additionally, Innogy has signed a 15-year agreement with Ørsted whereby the latter will purchase 100 %of power produced by Triton Knoll wind farm.
Bünting added: “With the signing of this PPA with Ørsted and the financial closure, which we’ve reached today, we’re confident that our flagship Triton Knoll Offshore Wind Farm has robust, financial security at its heart.”
As part of the deal, Ørsted will be responsible for handling the intra-day fluctuations in volume and prices balancing the power into the grid upon commissioning of the offshore wind farm.