The Renewables Infrastructure Group has purchased a stake in the Hornsea 1 offshore wind farm off the coast of the United Kingdom.
In addition to acquiring a 7.8% equity stake in the operational facility, The Renewables Infrastructure Group plans to issue new ordinary shares through a non-preemptive tap issuance.
The funds will be used to support “new attractive” prospects in The Renewables Infrastructure Group’s key markets. One of these is an Iberian solar project in which The Renewables Infrastructure Group is in “exclusive negotiations” to invest.
The Renewables Infrastructure Group also noted that the beginning of 2022 saw high wind levels and much higher power prices.
In the two months leading up to February 28, 2022, production and captured electricity prices were both above budget, with a particularly high wind resource in February.
Since December 31, 2021, this is expected to add one penny per share to The Renewables Infrastructure Group’s net asset value above projected performance.
With 13 years left on its contract, Hornsea 1 is eligible for an inflation-linked Contract-for-Difference subsidy.
It has a total size of 407 square kilometres and is the world’s largest active offshore wind farm.
The wind farm is around 120 kilometres off the coast of Yorkshire, England, and has shown strong operational performance since it began operations in 2020, according to The Renewables Infrastructure Group.
