The developers of the Sheringham Shoal and Dudgeon offshore wind farm extensions have decided to combine the two into a single project.
Equinor holds stakes in both wind farms – 100% in Sheringham Shoal, with Equitix Offshore 3 and Macquarie Asset Management holding options to acquire a total of 60% interests once a final investment decision is taken.
The Dudgeon extension project is owned 35% by Equinor, 35% by Masdar and 30% by China Resources Power.
The partners have agreed to bring the two projects under a joint ownership structure in one legal entity, subject to regulatory approvals being obtained before closing.
This aims to derisk the projects through a simplified and collaborative approach.
Equinor vice-president of UK renewables Halfdan Brustad said: “Drawing on our experience of oil and gas unitisation, we have applied key learnings to make this project more competitive, ensuring economic efficiencies and cost savings.
“By developing one project instead of two, we can unlock additional value from volume at scale, whilst sharing joint infrastructure, maximising local benefits and minimising disruption.”
The combined extension projects will add 719MW to the existing wind farms, with Sheringham Shoal having a capability of 317MW and Dudgeon 402MW.
UK authorities granted the development consents in April 2024, the first time in the UK that two offshore wind projects under separate ownership were awarded consent under a shared application.
Based off the coast of Norfolk, Sheringham Shoal was completed in 2012 and Dudgeon was finished in 2017.
The extension project aims to power nearly 1.5 million UK homes and generate over £370 million in direct gross value added (GVA) to the East Anglian and UK economy.
This includes supporting more than 1,800 full time jobs per year during the construction phase.
Masdar director of global offshore wind and UK operations Husain Al Meer said: “The establishment of this joint venture will streamline operational efficiencies, and in doing so, accelerate the development of additional offshore wind capacity for the British economy – a crucial contribution to meeting the UK’s ambitious clean energy targets, and enhancing energy affordability, resilience, and security.”
A spokesperson for the option holders, Equitix, TRIG and Macquarie Asset Management added: “We support this innovative merger of the Sheringham Shoal and Dudgeon extension projects; it is an important development that will support the UK’s transition to net zero, as well as delivering more competitive energy prices and greater energy security.”
The project partners will now continue to mature the development toward making a final investment decision.
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