Total, a renowned oil & gas firm, has reportedly announced the signing of a new deal with SSE Renewables, the renewable energy subsidiary of SSE plc, to procure 51% stake in its offshore wind project, Seagreen 1, for an upfront price at of £70 million as well as earn-outs of up to £60 million in total, all subject to the fulfilment of  performance conditions.

The offshore 1140 MW wind project has also simultaneously reached a final financial close and investment decision. The purchase deal also includes a potential opportunity for extension of approximately 360 MW.

Seagreen 1, located 27 km off of the coastline from Scottish part of the North Sea, has obtained all the necessary permits. The project’s onshore construction started in the first quarter of 2020. The project is designed to fulfill the energy demands of about 1 million houses and would start generating renewable electricity by the end of 2022.

Seagreen 1 would be the largest offshore wind project located in Scotland after its completion. The power generation project represents a worldwide investment of about $3.7 billion. The oil & gas firm has raised approximately external financing of approximately 70% for its stake in the project.

CEO and Chairman of Total, Patrick Pouyanné stated that with this acquisition in one of the biggest offshore wind farms of the UK, the company has built a firm position in the largest offshore wind energy market of the world. This acquisition signifies a massive change in terms of scale for the company’s offshore wind activity, which conforms to its strategy of attaining growth in low carbon and renewable electricity in a profitable manner.

Pouyanné further added that being among the major players in the energy industry of the UK, the company would leverage its offshore maintenance and operations expertise to ensure that Seagreen 1 is a success.

Seagreen 1 also benefits from a Contract for Difference (CfD) that spans 15 years and was awarded to it by the government of UK for over 454 MW, which accounts for approximately 42% of overall project capacity.

Source credit: https://www.total.com/media/news/press-releases/total-enters-giant-offshore-wind-farm-project-scottish-north-sea