German renewable energy company RWE signed an agreement with UK-based investment manager Greencoat to sell a 49% stake in the UK offshore wind farm Humber Gateway for a total cash consideration of 648 million pounds, the company announced Monday.
The disposal is part of RWE's capital rotation program and the proceeds will be used to finance further growth in the renewable energy business, the company said.
The Humber Gateway wind farm located off the coast of East Yorkshire in the UK, has an installed capacity of 219 megawatts. The wind farm was commissioned in 2015.
With a 51% share in the project, RWE will remain the majority shareholder in the project and the wind farm will continue to be operated by RWE.
The German company noted that closing of the transaction is subject to the approval of the Supervisory Board of RWE AG and is expected by mid-December.
'The transaction with Greencoat also demonstrates the attractiveness of the United Kingdom for investment in wind power. The market provides great potential for growth with significant buildout targets. This means the UK will play a key role in RWE’s strategy to grow its renewables business and to become carbon neutral by 2040,' the company said.
RWE is currently constructing the offshore wind farm Triton Knoll and is developing the Sofia offshore project, which is expected to enlarge RWE's existing UK portfolio of nine offshore wind farms.
In addition, RWE recently signed Agreements for Lease with The Crown Estate to develop extension projects at four offshore wind farms and the company also has a strong footprint in the UK onshore market.
By Ebru Sengul Cevrioglu