Green Investment Bank invests in offshore renewables

The UK Green Investment Bank (GIB) has announced two equity investments in the UK offshore wind sector.

GIB is investing alongside Japan’s Marubeni Corporation to jointly purchase a 50 per cent stake in the Westermost Rough offshore wind farm from DONG Energy. GIB is committing £241m to the transaction, which is valued at approximately £500m.

The Westermost Rough project, currently in the early stages of construction off the coast of Yorkshire, will utilise Siemens’ next generation 6MW direct drive turbines, a class of turbine being deployed commercially in the UK for the first time. The project also represents GIB’s first construction risk in an investment.

Once operational, Westermost Rough is expected to generate over 800GWh of net renewable electricity.

GIB has also agreed to acquire a 10 per cent stake in the Gwynt y Môr offshore wind farm, from RWE Innogy for £220m. The project, off the coast of north Wales, is in the late stages of construction.

Gwynt y Môr is the largest offshore wind farm under construction in Europe. Once operational it will generate over 1,700GWh of net renewable electricity each year. 

The proceeds of both sales are expected to be reinvested back into renewable energy projects in the UK.

With £3.8bn of funding from the UK government, GIB is mandated to invest at least 80 per cent of its capital into offshore wind, waste recycling and energy from waste, and energy efficiency.