The wind farm has now successfully reached financial close, securing a £3.5 billion financing package from lenders comprising 22 banks. This will enable Inch Cape Offshore Limited, a 50:50 joint venture between Red Rock Renewables and ESB, to progress with offshore construction of the project.
Inch Cape Offshore Wind Farm is located 15 kilometres off the Angus Coast in the North Sea and comprises of 72 turbines. The wind farm is currently under construction and is set to enter operation in 2027. The power generated will be transported 85 kilometres to a new substation at Cockenzie in East Lothian, and provide enough clean energy to power almost half the homes in Scotland.
When financing any major offshore wind farm, lenders require a robust, independent assessment of all the key risk factors influencing the expected financial and technical performance of the project. K2M supported the lending consortium from the early stages of development until financial close, conducting a comprehensive bankability assessment and detailed technical due diligence to de-risk their financing decision.
“Inch Cape Offshore Wind Farm is a strategically important project that will boost the UK’s wind capacity and supply millions of households with clean, sustainable electricity” said Bethany Rowson, Principal Due Diligence Consultant at K2M. “We’re thrilled to have supported the project in reaching financial close, and we look forward to working with Inch Cape Offshore Limited on the ongoing construction of the wind farm.”
K2M was originally appointed by Inch Cape Offshore Limited as LTA in 2021 and has provided technical due diligence on the project design, delivery, operations and lender engagement. K2M will continue to provide support throughout the final construction and operational phases of the wind farm.
“Reaching financial close is an important milestone for the project and a culmination of much hard work and collaboration between all of the parties involved” added Inch Cape Project Director John Hill. “K2M is known for its technical due diligence knowledge and expertise, and has played an important role in enabling the project to reach financial close and secure its long-term future.”
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