Denmark’s Dong Energy has sold half of its 50 percent stake in the world’s largest offshore wind farm located in Britain to Canada’s the Caisse de depot et placement du Quebec for 644 million pounds (US$1.1 billion), the two sides said on Friday.
The deal reduces Dong’s stake to 25 percent and leaves Germany’s E.ON as the project’s largest shareholder with 30 percent.
The 630-megawatt London Array offshore windfarm is located 20 kilometres off the coast of Kent and was officially opened in July 2013.
“This is an opportunity for us to invest, alongside established partners, in a quality asset in a growth-driven sector,” said Macky Tall, senior vice-president of infrastructure at the Caisse.
The transaction is expected to be completed in the first half of 2014.
The Caisse is one of Canada’s largest institutional fund managers. It looks after public and private pension and insurance funds from Quebec with a combined value of around $186 billion.
Britain’s renewable energy sector has become an attractive market for investors seeking regulated assets as the government backs the development of green energy projects with long-term subsidy payments.
Along with Dong Energy, the Caisse and E.ON, Abu Dhabi’s Masdar holds a 20 percent stake in the project.
(This story has been edited by Kirk Falconer, Editor, peHUB Canada)
Photo courtesy of Shutterstock