Total has entered into an agreement with SSE Renewables to acquire a 51% stake in the Seagreen 1 offshore wind farm project.
The deal involves an upfront payment of £70 million and earn-outs up to £60 million subject to performance conditions, and covers a potential extension opportunity of up to 360MW.
The 1,140MW project, which is located 27 kilometres from the coastline in the Scottish North Sea, has simultaneously reached a final investment decision and financial close.
Expected to be Scotland’s largest offshore wind farm, the facility is designed to cover the energy requirements of around a million homes and will start producing renewable electricity from the end of 2022.
SSE’s Chief Executive, Alistair Phillip-Davies, said: “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.
“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.”