Vattenfall’s Norfolk Offshore Wind Zone Sold to RWE for £963 Million

Vattenfall’s Norfolk Offshore Wind Zone Sold to RWE for £963 Million

(IN BRIEF) Vattenfall has agreed to sell the Norfolk Offshore Wind Zone to RWE for £963 million, ensuring the continued development of three wind farms off the east coast of England. The Norfolk Zone, with a total capacity of 4.2 GW, is one of the world’s largest offshore wind projects, capable of powering four million British households. Vattenfall’s divestment will allow it to focus on other fossil-free projects while securing the future of the Norfolk Offshore Wind Zone. The deal is pending regulatory approvals and is expected to close in Q1 2024, with Vattenfall continuing to develop the projects until then.

(PRESS RELEASE) STOCKHOLM, 21-Dec-2023 — /EuropaWire/ — Vattenfall, a Swedish government-owned multinational power company, has entered into an agreement with RWE for the divestment of the Norfolk Offshore Wind Zone. The purchase price, reflecting an enterprise value of £963 million, will ensure the ongoing development of these projects and the supply of fossil-free electricity to millions of households across the United Kingdom.

The Norfolk Zone encompasses three fully consented wind farms – Norfolk Boreas, Norfolk Vanguard West, and Norfolk Vanguard East – strategically located off the eastern coast of England. This development ranks among the largest offshore wind initiatives globally, boasting a combined capacity of 4.2 GW, equivalent to meeting the electricity needs of four million British households.

Vattenfall views the agreement with RWE as the optimal path forward, benefiting both the company and the Norfolk projects. This divestment empowers Vattenfall to channel investments into fossil-free ventures that align better with its overall portfolio and risk tolerance, while simultaneously safeguarding the future of the Norfolk Offshore Wind Zone. Consequently, the previously reported impairment and provisions by Vattenfall earlier this year will be reversed.

Vattenfall reaffirms its commitment to being a significant offshore developer, exemplified by recent collaborations such as the partnership with BASF to develop the 1.5GW Nordlicht cluster off the coast of Germany.

Moreover, Vattenfall remains steadfast in its dedication to the United Kingdom, where it has an installed capacity of 1.1GW of offshore and onshore wind energy. The company is actively developing the 798MW Muir Mhor floating offshore wind farm in partnership with Fred.Olsen Seawind, with an additional pipeline of 500MW of onshore wind projects. Vattenfall is also progressing heat networks in three major UK cities and operates as one of the UK’s premier independent distribution network operators.

Anna Borg, Chief Executive Officer at Vattenfall AB, expressed her optimism about the agreement:

“The Norfolk Offshore Wind Zone is incredibly important for the energy transition and reaching net zero. Today’s agreement with RWE is great news for the UK’s energy security, ensuring the Zone’s continued journey towards providing clean electricity for over 4 million homes as well as jobs and investment into the UK. Both the UK and the offshore market remain attractive over the long term, and we will focus our offshore investments in projects which are appropriate to our current risk appetite while continuing to operate and grow our existing fleet of assets.”

The sale of Boreas, Vanguard East, and Vanguard West is contingent upon regulatory approvals, with the transaction anticipated to conclude in the first quarter of 2024. During this interim period, Vattenfall will maintain its efforts in advancing the Vanguard East and Vanguard West projects, with a transitional service agreement in place to ensure continuity in the development phase.

Read more about the Norfolk Offshore Wind Zone here: Vattenfall’s Norfolk Offshore Wind Zone – Vattenfall

For further information, please contact:

Johan Sennerö, Vattenfall Media Relations +46 73 046 40 45

Johan.senneroe@vattenfall.com

Tim Dunford, Vattenfall Media Relations UK +44 77 855 526 66
tim.dunford@vattenfall.com

SOURCE: Vattenfall AB