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DOGGER BANK C REACHES FINANCIAL CLOSE

2nd December 2021 in Construction, Press releases, Project news, Uncategorised

Joint venture partners SSE Renewables and Equinor have reached financial close on Dogger Bank Wind Farm C, the third phase of what will be the world’s largest offshore wind farm when complete in March 2026.

SSE Renewables and Equinor are already constructing the first two phases of the 3.6GW Dogger Bank Wind Farm with Eni, joint venture partner on phases A and B of the world-leading offshore wind project to be installed off the north east coast of England. Now, with financial close being reached on the project’s third phase, Dogger Bank Wind Farm has passed the last important milestone ahead of its construction delivery programme.

Total investment in Dogger Bank Wind Farm will be around £9 billion, of which around £3 billion is for phase C including offshore transmission capex in the range of £900-1000m.

Dogger Bank C has a capacity of 1,200MW and will generate around 6TWh. In total, Dogger Bank will produce enough clean, renewable electricity to supply 5% of the UK’s demand, equivalent to powering six million UK homes.

Dogger Bank A and B is a joint venture between SSE Renewables (40%), Equinor (40%) and Eni (20%). On 2 November 2021 SSE and Equinor announced the sell down of a combined 20% share in Dogger Bank C to Eni (10% each) for a total consideration of £140m. The transaction is expected to close in Q1 2022, subject to regulatory and lenders approvals and customary purchase price adjustments. Eni will enter the asset effective from completion of the sell down transaction. Once the transaction is complete, the new overall shareholding in Dogger Bank C will be SSE Renewables (40%), Equinor (40%) and Eni (20%). Extended partner alignment will enable further synergies across, both in the construction and operations phase of the Dogger Bank wind farm.

Dogger Bank Wind Farm is pioneering new technology and breaking world records in its delivery including green financing records. Financial close on Dogger Bank C has been reached through the financing support of a group of lenders comprising 28 banks and three export credit agencies (ECAs). Taken in aggregate with the financing last year of the A and B phases of the Dogger Bank project, reaching Financial Close on all three phases of Dogger Bank Wind Farm is the largest offshore wind project financing to date globally.

Alistair Phillips-Davies, SSE Chief Executive, said: It is a fantastic achievement to be reaching financial close on the third phase of the world’s largest offshore wind project, just weeks after COP26 concluded in Glasgow and today marks an important early milestone in the delivery of our own Net Zero Acceleration Programme. Our plans will enable delivery of over 25% of UK’s 2030 40GW offshore wind target, whilst also expanding overseas, delivering over 20% of upcoming UK electricity networks investment and deploying the critical flexibility technologies to provide security of supply.

“Construction is well underway on the first two phases of Dogger Bank with work on the third phase already progressing and we look forward to this ramping up in the New Year. As well as providing clean, green power, Dogger Bank is enabling the planned GE blade manufacturing plant in Teesside and a huge number of direct and indirect jobs.

Pål Eitrheim, Equinor EVP of New Energy Solutions, said: Reaching financial close on the third phase of Dogger Bank is a significant milestone as it demonstrates that we are on track with developing what will become the world’s largest offshore wind farm. The extensive interest from lenders underpins the attractiveness of UK offshore wind assets and the confidence in SSE and Equinor as developers. The level of interest achieved reflects the quality of the project and enables strong return on equity. As the wind farm’s future operator, we will leverage our offshore execution capability and continue to deliver value for years to come.”

Dogger Bank C is being project financed with gearing of c.70% for the generation assets. Gearing on the transmission facilities is set at 90% of the forecast OFTO sale proceeds, in line with standard market practice in the sector. Total senior debt facilities is around £2.5 billion plus ancillary facilities of around £435 million.

With the strong interest from lenders, Dogger Bank C was able to secure competitive terms, despite continued impact from the coronavirus pandemic on the macroeconomic environment. The final group of lenders includes experienced lenders, many of which are relationship lenders of both SSE and Equinor. The majority of lenders are the same as for the financing of Dogger Bank A and B, reached in November 2020.  A list of Dogger Bank C lenders, ECA and Advisors is available to download here.

SSE Renewables is leading on the development and construction of Dogger Bank Wind Farm, and Equinor will operate the wind farm on completion for its expected operational life of around 35 years.

About Dogger Bank Wind Farm

Dogger Bank Wind Farm was awarded exclusive development rights in 2010 by The Crown Estate as part of its third seabed licensing round. The project secured planning consent in 2015. In September 2019, Dogger Bank Wind Farm secured the following 15-year contracts with the Low Carbon Contracts Company (LCCC) through the UK Government’s Contract for Difference (CfD) auction:

  • Dogger Bank A (1,200MW) with a strike price of £39.65/MWh (in 2012 prices, CPI-indexed) for delivery in 2023/24.
  • Dogger Bank B and C (1,200MW each) with strike prices of £41.61/MWh (in 2012 prices, CPI-indexed) for delivery in 2024/25.

Onshore cable installation civils works for Dogger Bank C will start in Q1 2022; construction of the onshore convertor station will commence in Q2 2022. Offshore export cable installation will commence in Q1 2024; Offshore platform installation will commence in Q2, 2024; foundation installation will commence in Q3, 2024; Turbine installation will commence in Q2, 2025. First power is anticipated in Q3, 2025 and full power in Q1, 2026.

Onshore construction is currently underway for Dogger Bank A and Dogger Bank B, with offshore construction on Dogger Bank A due to begin in Q2 2022. First power is expected in Summer 2023 and Summer 2024 for Dogger Bank A and B, respectively, with commercial operations to follow around six months later.

Seaway 7 ASA to transport and install turbine foundations for Dogger Bank C

12th November 2021 in Press releases, Project news, Supply Chain, Uncategorised

Dogger Bank Wind Farm has awarded the contract for the transport and installation of monopile foundations and transition pieces on the third phase of what will be the world’s largest offshore wind farm to Seaway 7 ASA.

The contract award is subject to Dogger Bank C reaching Financial Close by the end of 2021.

The 3.6GW Dogger Bank Wind Farm, which is to be built more than 130km off the Yorkshire coast in the North Sea, is currently being developed in three 1.2GW phases: Dogger Bank A, B and C.

Seaway 7 ASA has already been appointed the foundation installation contract for both Dogger Bank A and B. Under this latest contract, Seaway 7 ASA will utilise its specialist Heavy Lift Vessel Alfa Lift, which is set to be the world’s largest and most efficient custom-built offshore wind foundation vessel. Installation by the company of offshore foundations on the 1.2GW Dogger Bank C of will commence in 2024 following the foundation installation of the Dogger Bank A and B phases.

Stuart Fitzgerald, Chief Executive Officer of Seaway 7, said:

“We are pleased to now have been awarded the work to install foundations on all three phases of the world’s largest offshore wind farm.  We look forward to executing the work with quality and safety at the forefront and to working closely with our customer to deliver on the project objectives.”

Steve Wilson, Project Director for Dogger Bank Wind Farm, said:

“It’s great to be able to confirm that Seaway 7 has been awarded this contract. The Alfa Lift is one of the most innovative heavy transportation and installation vessels on the market and we are very pleased to have them working with us across all three phases as we deliver this ground-breaking project.”

Dogger Bank A and B is a joint venture between SSE Renewables (40%), Equinor (40%) and Eni (20%). In November 2021 SSE Renewables and Equinor, 50:50 joint venture partners in Dogger Bank C, announced Eni will take a 20% stake in the final phase, with SSE Renewables and Equinor maintaining 40% stakes each. The deal is expected to complete in Q1 2022, subject to Dogger Bank C Financial Close and regulatory approvals.

SSE Renewables is leading on the development and construction of Dogger Bank Wind Farm, and Equinor will operate the wind farm on completion. 

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SSE urges public to sign their names on the world’s largest offshore wind farm in COP26 call to action

6th October 2021 in Press releases, Project news, Uncategorised

GE Haliade X turbine
  • Names will adorn the Dogger Bank Wind Farm in the North Sea off the Yorkshire coast as legacy of COP26.
  • UK Prime Minister Boris Johnson and COP26 President Alok Sharma among the first to sign up.
  • Signatures represent a show of support for world leaders to commit to more ambitious climate action at COP.

SSE, one of the UK’s largest low-carbon power firms and a Principal Partner of COP26, is inviting those who want to see an ambitious climate action agreed at COP26 to show their support by putting their names on the world’s largest offshore wind farm – with UK Prime Minister and COP26 President Alok Sharma among the first to sign up.

The switch to clean energy is vital if the world is to heed the IPCC’s recent ‘code red for humanity’, and, as the biggest single source of offshore power in the world, Dogger Bank Wind Farm is a symbol of the change needed globally.

SSE, with its joint venture partners Equinor and Eni, is offering world leaders and the general public alike a unique opportunity to be part of history with their names on Dogger Bank’s powerful turbines as a poignant symbol of the need for more urgent action and as a legacy of COP26.

The giant wind farm demonstrates how clear Government policy and private sector investment can drive the transition from carbon-intensive to clean power. Just one turn of a Dogger Bank turbine, three times bigger than the London Eye, will be enough to power a British home for two days.

With just 25 days to COP26, the UK public are being encouraged to throw their weight behind the need for ambitious global climate action to limit warming to 1.5 degrees.

The Prime Minister and COP26 President have today signed up to having their names added to the wind farm and will be encouraging world leaders to join them at COP26.

COP26 President-Designate Alok Sharma said:  

“The impacts of climate change can be seen around the world and COP26 is the last best hope for the world to come together and take action to protect the future of our planet.

“Dogger Bank has been developed by a UK business with international partners, manufactured on Teesside and employing thousands of UK workers, with its 3.6GW of wind energy set to power six million homes. Adding your name to this symbolic project ahead of COP26 is a great way to show support and leave a legacy.”

Across the country, people have already been doing their bit to drive change, from small individual actions to big businesses investing in infrastructure and technology to drive a cleaner, greener future.

SSE is investing £7.5bn in low-carbon projects to support the UK’s decarbonisation plans and is a proud partner to COP26.

Alistair Phillips-Davies, SSE Chief Executive, said:

“Tackling the climate emergency requires everyone to play their part – from world leaders to governments to big businesses to communities to individuals. What we are building at Dogger Bank is representative of what can be done when government, business and the public pull together to power change.

“We want to send a clear signal ahead of COP26 that the writing is on the wall for climate change – literally in this sense – and by lending their name to Dogger Bank, anyone who cares about climate action can make their voice heard and create a lasting legacy.

“When we look back in decades to come, we want to say this was the moment the wind changed, with the demand from the public for an ambitious COP26 agreement helping avert the worst of global warming.”

Climate leaders from across the globe will be invited to add their name and lend their support for greater climate action by signing the turbine at COP26 itself in Glasgow.

Join the clamour for climate action and add your name to the world’s largest offshore wind farm now. The wind farm is currently under construction off the Yorkshire Coast with first power due in summer 2023. SSE Renewables is leading the development and construction phases of Dogger Bank Wind Farm and Equinor will lead on operations for its lifetime of up to 35 years.

GE Renewable Energy secured contracts to provide its Haliade-X turbines for all three phases of the wind farm and is building a brand new, state-of-the-art factory in the north east, made possible by the major Dogger Bank contracts, creating hundreds of green jobs.

Project Director for Dogger Bank Wind Farm, Steve Wilson, said:

“The north and north east of England are at the heart of building a low-carbon future and you can make your mark on history, alongside the Prime Minister and COP 26 President, by adding your name to this record-beating project. 

“We’re delighted to offer this once-in-a-lifetime opportunity to be part of a fitting legacy of a pivotal moment in time, where we make the switch to a more sustainable world for future generations.”

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Picture caption: SSE, with its joint venture partners Equinor and Eni, is offering world leaders and the general public a unique opportunity to be part of history with their names on Dogger Bank’s powerful turbines as a poignant symbol of the need for more urgent action and as a legacy of COP26. Picture source: GE Renewable Energy.

Dogger Bank Wind Farm and UK sub-supplier support school health event

22nd September 2021 in Community News, Press releases, Project news, Uncategorised

  • Youngsters learn about importance of health and safety in offshore wind sector.
  • Nottinghamshire-based firm nmcn shines a light on the construction industry.
  • nmcn to donate career storybook to every Primary School in East Riding.

Representatives from the team building the world’s largest offshore wind farm took part in a health promotion event to inspire young people at an East Riding primary school.

The week-long series of health-focused events was organised by Woodmansey CE Primary School, with the Dogger Bank team invited along to address the health and safety-related aspects of the offshore wind industry.

A representative from nmcn, a construction firm working on behalf of Dogger Bank’s tier one supplier Hitachi ABB Power Grids, shared exerts from the company’s “When I grow up” career story book. nmcn, which is supporting the construction of the wind farm’s first onshore convertor station, near Beverley, is donating a copy of the award-winning book to every primary school in East Riding. More information about the book is available at https://nmcn.com/news/when-i-grow-up-nmcn-childrens-book/

Woodmansey CE Primary School Head of School, Bethan Nicholls, said:

“When we first heard about the role Woodmansey was playing in the installation of the largest offshore wind farm, we knew we had to share this journey with the children. Our annual Health Week provided the perfect platform for Rachel and Chris to come and share the benefits of wind farms and how the children’s very own village was being used.

“STEM is such a vital area of the curriculum and events such as this provide the children with real experience of the industry, hopefully inspiring some of our children to seek future careers within the science, technology, engineering or maths sectors. We are very grateful to Rachel and Chris for their engagement with us.”

Community Engagement Manager for Dogger Bank Wind Farm, Rachel Lawrence, said:

“The onshore cable route for the wind farm runs directly underneath the village of Woodmansey, and local children would have seen critical work going on near their school very recently. So it’s been great to have the opportunity to come in and talk to the children about how those cables will eventually transmit renewable energy to millions of UK homes, as well as sharing important health and safety messages from across the green energy sector.

“The children enjoyed trying on some protective clothing and asked some impressive questions about the energy transition.

“It was also great to have the support of nmcn to share their impressive career storybook, which they’re offering to all 124 primary schools in East Riding.”  

In June Dogger Bank Wind Farm unveiled plans to invest £1 million in coastal communities during its construction. The programme will put science, technology, engineering and maths (STEM), at the heart of children’s education, helping them prepare for jobs that will be vital to the green economic recovery of the UK. Local community organisations can also apply for grants up to £500 at https://doggerbank.com/about/community/

The East Riding part of the programme was developed in partnership with East Riding of Yorkshire Council, providing opportunities for all 124 primary schools in the county to  increase and expand their STEM provision. The programme will also be rolled out on Teesside where the wind farm’s third phase connects to the National Grid, as well as South Tyneside where the operation and maintenance base will be located.

nmcn Business Development Manager, Chris Withers, said:

“The Dogger Bank Wind Farm is a major development which will deliver a number of benefits for both the public and supply chain. Through nmcn’s involvement in the project on behalf of Hitachi ABB Power Grids providing the civil engineering scope, we are also delighted to be able to visit Woodmansey Primary School to provide an insight into the construction industry, deliver health and safety advice and inspire future generations.”

Dogger Bank Wind Farm, which is to be built more than 130km off the Yorkshire coast in the North Sea, is currently being developed in three 1.2GW phases: Dogger Bank A, B and C.

Dogger Bank A and B is a joint venture between SSE Renewables (40 per cent), Equinor (40 per cent) and Eni (20 per cent), and will connect the National Grid between Beverley and Cottingham. Dogger Bank C is a 50:50 joint venture between SSE Renewables and Equinor and will connect the National Grid on Teesside.

Work on the onshore convertor station for Dogger Bank A began in the summer, at a site off the A1079 between Beverley and Cottingham. The convertor station will take the electricity generated by the wind turbines from the first phase of the wind farm in the North Sea, and convert it from HVDC to HVAC current, before the power passes through the adjacent main substation into the National Grid for distribution to homes and businesses.

nmcn is carrying out civil engineering work at the site on behalf of Hitachi ABB Power Grids. Hull-based Ashcourt Group previously carried out preparation work at the A1079 site on behalf of Hitachi ABB Power Grids.

Dogger Bank Wind Farm awarded contracts to Hitachi ABB Power Grids to install its HVDC Light® technology to connect the transmission link on all three phases of Dogger Bank Wind Farm, making it the UK’s first HVDC-connected windfarm.

South Tyneside manufacturer wins big on offshore wind

23rd July 2021 in Press releases, Project news, Supply Chain, Uncategorised

South Tyneside manufacturer Metec UK has won two multi-million pound contracts on Dogger Bank Wind Farm.

Metec UK manufactures sacrificial anodes for the long-term protection of steel jackets and foundations against corrosion, and is used in the offshore renewable energy industry.

The fast-growing company, established only four years ago, will supply cathodic protection sacrificial anodes for transition pieces and monopiles, for the first two phases of the record-breaking wind farm.

Built by SSE Renewables and operated by Equinor, the wind farm has already created or supported thousands of new jobs and will be built in three phases, Dogger Bank A, B and C.

Alberto Via, UK Managing Director of METEC UK, said:

“Over the last six months we’ve been absolutely delighted to win a number of domestic and international contracts, including in Scotland, France and Holland. These latest successes – and in particular the flagship Dogger Bank Wind Farm contract – justifies our commitment to South Tyneside, the north-east and the UK. Our success demonstrates our ability to support large, important and prestigious renewable energy projects of this nature throughout the UK and Europe.

“We have the capacity, capability and expertise at Metec that places us right at the heart of where we need to be in an industry which is set to see significant growth and investment over the next 10 years.

“As a young, ambitious and expanding company, which has invested over £4 million in premises and furnaces since 2017, we expect to see further growth throughout 2021. We are in this for the long term and we’re very excited for the future of Metec and the industry as a whole.”

Metec UK, which has manufacturing facilities in South Shields and Tunisia with representation around the globe, is a leading manufacturer of corrosion protection for high value subsea assets. Initially employing just six people, the company now has 45 people within its business.

Halfdan Brustad, Vice President for Dogger Bank at Equinor, said:

“As we build up our operations in South Tyneside it’s great to see a local company not only win this flagship contract with the world’s biggest offshore wind farm, but also exporting to other countries.

“With ambitious targets to quadruple UK capacity in the next decade, the offshore wind industry provides billions of pounds of supply chain opportunities, and in supporting UK companies we will also build up a competitive supply chain that can win international contracts.

“We look forward to continuing to work with UK companies, particularly in northern England where we will operate the wind farm for decades to come.”

Metec UK is a sub-contractor with Dogger Bank Wind Farm’s tier one contractor, Smulders. Smulders was selected for the supply, fabrication and fit-out of the secondary steel for the transition pieces in late 2020. Smulders will work alongside Sif, the company selected to provide fabrication and supply of 190 monopiles and primary steel for the transition pieces.