The UK Green Investment Bank (GIB) has announced that it will make its first direct equity investment in offshore wind through the acquisition of a 24.95 percent stake in the Rhyl Flats Wind Farm for a cash consideration of £57.5 million. The transaction will be a landmark step for the bank in supporting one of its core sectors and will acquire its stake alongside Greencoast UK Wind PLC which will also acquire 24.95 stake from RWE following its floatation on the stock market.
Rhyl Flats is located eight kilometres off the North Wales coast in waters of an average depth of eight metres. It became fully operational in March 2010 and consists of 25 Siemens 3.6MW wind turbines with a total capacity of 90MW.
“Rhyl Flats was an ideal investment for us as it helps to develop the market for buying and selling operating offshore wind assets, allowing the release of capital back to the original developers, which will be invested in new renewable projects in the UK” said Shaun Kingsbury, CEO of the GIB. “At the same time as developing a market, this investment will deliver a commercial return to the bank.”
RWE has chosen to sell a minority stake in the wind farm in order to raise new capital for investment in other renewable energy projects throughout the UK.
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