Ocean Winds, together with its joint venture partner Ignitis Group, has reached financial closing for Moray West offshore wind farm project, after securing £2bn non-recourse project funding.

Located in the Moray Firth region, off the coast of Scotland, Moray West is a fully consented offshore wind project, with an expected installed capacity of 882MW.

It will feature 60 wind turbines with a capacity of 14.7MW each to be supplied by Siemens Gamesa Renewable Energy, scheduled to be fully completed by 2025.

The project partners intend to use the financing to secure the remaining elements of supply chain activity in preparation for offshore installation works in late 2023.

Ocean Winds UK country manager Adam Morrison said: “We are delighted to have reached this important milestone following the shareholders’ early support for a bold development strategy.

“Reaching Financial Close demonstrates the confidence that the financial markets have in the strength of the project and its delivery partners. The project team can now focus their combined efforts and expertise to deliver the project on time.

“In Scotland, the significant economic successes include the use of the key ports of Invergordon and Nigg, together with our long-term commitment to investing in Buckie as the operations and maintenance base.”

Ocean Winds is a joint venture between ENGIE and EDP Renewables. Ignitis is Lithuania’s state-controlled energy holding company.

Moray West project is backed by long-term corporate power purchase agreements (CPPAs) for commercialising more than 50% of the project’s expected output.

In addition, the project has also secured a 15-year indexed Contract for Difference (CfD) for a third of the installed capacity in the UK Allocation Round 4 (AR4).

Moray West is expected to deliver low-cost, low-carbon renewable electricity to address the annual consumption of 1.33 million households.

Both the project partners are preparing for the first auction for offshore wind in Lithuania.

Ocean Winds chief operating officer Grzegorz Gorski said: “Moray West represents the second secured project finance in our portfolio of projects for the year 2023, after the îles d’Yeu Noirmoutier offshore wind farm in France.

“We now have close to 1.5GW of offshore wind energy in construction in the world, in addition to our 1.5GW already operating.

“Building on our local engagement, we are advancing rapidly globally to provide clean energy to consumers and to companies, accompanying them in their energy transition.”