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Centrica to divest 50% stake in Lincs offshore wind project to UK Green Investment

CTBR Staff Writer Published 16 January 2017

Centrica has agreed to divest its 50% stake in the 270MW Lincs offshore wind farm to the UK Green Investment Bank for £487m.

Following repayment of related debt and other costs, Centrica will be making around £220m from the net proceeds of the deal.

Located off the North East Lincolnshire coast, the wind farm is jointly owned by Centrica along with Dong Energy and Siemens Project Ventures which have 25% stakes respectively in the project.

Siemens will also divest its stake in the project to the UK Green Investment Bank Financial Services managed entities and the UK Green Investment Bank.

The deal is likely to be closed in February with Centrica agreeing to continue its operations and maintenance support to the offshore wind farm project for a 12-month transitional period which begins from the closing date of the sale.

Dong Energy, which will retain its 25% interest, has agreed to handle the Lincs’ operations from Centrica for 15 years post the completion of the latter’s commitment during the transitional period.

Centrica’s sale of its Lincs’ stake marks its exit from the ownership of wind power generation assets. However, the British energy and services company stated that it will continue to help in development and operation of wind farms by making renewable power purchase deals.

Officially opened on 1 August 2013 after three years of construction, Lincs is located near the Skegness coast. The offshore wind farm project comprises 75 Siemens 3.6MW turbines.

Image: Centrica to make £220m from sale of its 50% stake in Lincs project. Photo: courtesy of Centrica plc.