Secures NOK 65 billion for Doggerbank development – E24

Equinor and SSE are ready with the financing of the first two phases of the offshore wind farm Doggerbank to NOK 65 billion. This is the largest financing of an offshore wind project ever, according to the companies.

Published:Published: November 26, 2020 8:24 AM

According to Rystad Energy, the giant Doggerbank project will compete with the largest oil and gas projects in the world in the first half of the 2020s.

SSE and Equinor are now ready to finance the first two phases at a cost of 5.5 billion pounds, which is equivalent to 65 billion kroner, according to a report.

– It is an important milestone to have secured project financing of the first two phases of Dogger Bank, says Equinor’s director of new energy solutions Pål Eitrheim.

Doggerbank is being expanded in three phases, and the first two will be over 2,400 megawatts. In total, the project is 3,600 megawatts.

When Doggerbank is completed in 2026, it is expected to deliver five percent of the UK’s electricity consumption, according to a statement from the companies.

Borrows from 29 banks

There are 29 banks and three export credit bureaus providing the loans.

This includes senior loan facilities of £ 4.8 billion and £ 0.7 billion in other loan facilities.

– The great interest from lenders underlines how attractive offshore wind farms in the UK are, and shows the market confidence in SSE and Equinor. As a future operator of the offshore wind farm, we are pleased to take the project a step further towards what will be a hub for offshore wind in the North Sea, says Eitrheim.

Among the suppliers for the project are Norwegian Aibel, which will supply converter platforms for electricity, and OHT, which will install turbine foundations with a new ship that is currently under construction in China.

The world’s largest turbine

The developers of Doggerbank have chosen the world’s largest turbine, American GE’s Haliade-X of 13 megawatts.

If 190 turbines are installed in the first two phases, they will have a total capacity of around 2,470 megawatts. If one bases oneself on full operation 4,000 hours a year, this will give an annual production of 10 terawatt hours (TWh).

In comparison, this corresponds to seven per cent of Norway’s electricity production last year.

The electricity from Doggerbank will be sold on 15-year agreements. Danske Ørsted will buy 40 percent of the electricity, while Shell will buy 20 percent. Equinor also buys 20 percent of the electricity through the subsidiary Danske Commodities, and SSE will buy the remaining 20 percent.

“Equinor is committed to becoming a leading company in the green shift, and contributes to the British authorities being able to deliver on their 10-point plan for a renewable industrial future,” says Eitrheim.

– Based on the size of the project, we have delivered record low prices for the British electricity market, and as an operator of the offshore wind farm, we will continue to create value for the UK for many years to come. Dogger Bank will supply British homes with renewable electricity, while the offshore wind farm will contribute to jobs and significant investment in the UK, he says.