SSE to buy other half of Seagreen Wind Energy

(Sharecast News) - SSE announced on Tuesday that it was exercising its pre-emption right in the sale of Fluor's 50% share in Seagreen Wind Energy, established to develop offshore wind projects in the Firth of Forth Zone.The FTSE 100 energy firm already held the other 50% share of the joint venture, and would purchase Fluor's share for a single payment of £118m.It said the transaction remained subject to approval from Crown Estate Scotland, the public body that managed the leasing of Scotland's seabed.The future ownership structure would be "further reviewed" in the coming months, with the view to maximising value for SSE shareholders.Increasing its share in Seagreen was in line with SSE's offshore wind ambitions, and with the group's broader strategy to create value for shareholders and society from developing, owning and operating energy and related infrastructure and services in a sustainable way, with regulated energy networks and renewable energy at its core, SSE said in its statement.Seagreen Phase 1, consisting of the 'Alpha' and 'Bravo' projects, was targeting up to 1.5GW of capacity.The project team was seeking amendments to the existing consent for 1.05GW, to take advantage of the advances in offshore wind turbine technology since the original consent was granted in 2014.SSE said it also intended to develop further phases in the Seagreen area.It explained that it remained focused on preparing the Seagreen Phase 1 projects in readiness to bid in the upcoming UK contracts for difference (CfD) auction, expected in May next year.SSE's share of existing offshore wind assets was described as "significant" by its own board in terms of volume and profit contribution, with both Walney and Greater Gabbard successfully operating since 2012.It said its portfolio would be further enhanced by the commissioning of Beatrice next year."The Seagreen acquisition aligns with SSE's ambition to create value from owning, operating and developing clean energy assets and infrastructure," said SSE wholesale director Martin Pibworth."We are looking forward to taking full ownership of Seagreen as we progress through this critical phase towards the CfD auction, expected in May 2019."SSE's expertise in the development, construction and operation of offshore wind will be an asset to Seagreen, and we will review the ownership structure in due course."The Seagreen acquisition would take SSE's total offshore wind portfolio to around 4GW.