United Kingdom

United Kingdom

Dong gains further Round 3 foothold in Centrica deal

UK: Dong Energy has signed a deal with Centrica to co-develop its 4.2GW of Round 3 concession in the Irish Sea.

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Dong has paid Centrica £40 million in cash to acquire a 50% share of the project. £15 million will be paid up front. The balance will be paid when they gain consent for a project in the zone and both agree to proceed.

Last week's announcement from Dong that it is to invest DKK 10 billion (€1.34 billion) a year for the next seven years, developing its offshore project portfolio.

Speaking about the Irish Sea announcement, Dong's acting CEO Carsten Krogsgaard Thomsen said: "This marks DONG Energy's second entry into a Round 3 project and Centrica is a natural partner for us as we already have a good working relationship with them from previous projects.

"It is a strategic addition to our long-term pipeline of projects which contributes to the industrialisation of the offshore wind business and bringing down costs."

The deal gives Dong a further foothold in the UK's 33GW Round 3 offshore programme. In January 2010, when the Round 3 results were announced, many industry observers were surprised Dong had failed to win a project.

This was changed late last year when Dong acquired part of the 4GW Horsea zone, on the east coast of England, from Mainstream Renewables.

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