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Dong Energy to divest 50% stake in Burbo Bank Extension project for £660m

CTBR Staff Writer Published 11 February 2016

Dong Energy has agreed to divest its 50% stake in offshore wind farm project Burbo Bank Extension in the UK to Danish pension provider PKA and Lego Group's parent firm Kirkbi for around £660m.

Under the agreed terms, each investor will own a 25% owner stake in the 258MW project, which will be developed by Dong.

Construction on the project is slated to begin in spring this year, with plans to commission the facility in the first half of 2017.

The wind farm will supply electricity to around 230,000 households per year.

The firm will be responsible for the sale and delivery of the electricity, which is generated by PKA and Kirkbi.

Dong Energy CEO Henrik Poulsen said: "I am delighted to welcome the Lego Group and PKA to a new partnership with Dong Energy.

"Both of them are already trusted partners in other Dong Energy offshore wind projects and we are proud to be able to build on these existing, successful partnerships."

The project with 32 turbines is claimed to be the first large-scale wind farm to deploy the new MHI Vestas 8.0MW turbine.

As part of a long-term agreement, Dong will offer operation and maintenance services for the project.

Lego Group president and CEO Jørgen Vig Knudstorp said: "This investment is another substantial step for the Lego Group towards balancing our global energy consumption with renewable energy capacity."

Dong Energy's plans to extend the Burbo Bank offshore wind farm in the Liverpool Bay of northwest England were approved by the UK Department for Energy and Climate Change in 2014.