ENERGY company Total has today announced the purchase of a majority stake in a giant Scottish wind farm project.
The North Sea oil and gas firm revealed it has entered into an agreement with developer SSE Renewables to acquire a 51% stake in the Seagreen Offshore Wind Farm project for an upfront payment of £70 million.
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It will also provide earn-outs up to £60m in aggregate payments, subject to performance conditions.
The Seagreen development, set to be the Scotland’s largest wind farm upon completion, will be able to generate enough energy to power around 1 million homes.
The project will start producing renewable electricity from end of 2022.
Patrick Pouyanné, Total chairman & chief executive officer, said: “As one of the main actors in the UK energy sector, Total will leverage its extensive expertise in offshore operations and maintenance to contribute to the success of the project alongside country’s leading offshore wind developer, SSE Renewables.”
“We are delighted to be partnering with Total to deliver Scotland’s largest offshore wind farm, Seagreen, which will make a significant contribution to the UK’s green recovery from coronavirus by unlocking £3bn of low carbon investment and generating the low carbon power we need to reach net zero.
The project represents a near-£3 billion global investment for Total and SSE Renewables.
Total added that it has secured close to 70% of external financing for its 51% stake.
Alistair Phillip-Davies, SSE’s chief executive, said: “Today’s announcement is the result of great efforts by both teams to successfully complete this transaction in the current challenging circumstances.
“Total’s extensive global experience in the offshore environment combined with their clear ambition to contribute to the development of renewable energy worldwide is a strong fit with SSE Renewables’ strategic objective to treble our renewable output by 2030.”
