Italian major Eni will buy a 20% stake in the world's largest wind power project - the UK's Dogger Bank offshore wind farm development - in a deal worth 405 million pounds ($545.21 million), Eni said in a statement on Friday.
Under the deal, Norway’s Equinor and Britain’s SSE will each hold a 40% stake in the offshore wind project, the statement said.
“For Eni, entering the offshore wind market in Northern Europe is a great opportunity to gain further skills in the sector thanks to collaboration with two of the industry’s leading companies," said CEO Claudio Descalzi.
"It is also a chance to make a substantial contribution to the 2025 target of 5 GW of installed capacity from renewables, an intermediate step towards the more ambitious target of zero net direct and indirect greenhouse gas emissions in Europe by 2050," Descalzi added.
Eni's stake in the project will add 480 MW of renewable energy to the company's 2025 target of 5GW of installed capacity from renewable sources and will allow it to explore potential synergies with the retail business, according to the statement.
The Northern Europe offshore wind market is one of the most promising and stable in the world, the statement noted.
The project involves the installation of 190 state-of-the-art turbines situated approximately 80 miles from the British coast.
Each turbine has a capacity of 13 MW for a total capacity of 2.4 GW. At full capacity, Dogger Bank (3.6 GW) will be the world’s largest project of its kind, generating around 5% of UK demand for renewable electricity and supplying energy to some six million British families.
Building the wind farm is expected to cost a total of £6 billion and will take place in two stages, with the first to be completed by 2023, and the second by 2024, said the statement.