Dong buys SSE Dutch offshore stakes

Denmark’s Dong Energy has taken total control of three Dutch offshore wind projects after buying out joint venture partner SSE, the UK-based utility.

Dong said the three projects – Den Helder 1, Breeveertien II and West-Rijn – have a total consented capacity of up to 1.05GW in the North Sea.

The Danish energy group paid SSE about €2.3m ($3.13m) upfront for the 50% it did not already own.

That will be followed by a further up to €12m if the projects proceed past certain milestones.

Dong said the fully-consented projects could be built by the end of the decade – but added that it wants to have “full visibility” of investment decisions before committing.

Samuel Leupold, executive vice president for Dong Energy Wind Power, said: “The three development projects could potentially be built with next-generation technology and contribute to the further development of the supply chain in the Netherlands, in which Dong Energy already has strong existing relationships.

“However, it is vital that there is full visibility about the investment conditions in due course if we are to subsequently make a final investment decision to build the projects as part of our 2020 strategy.”

The Dutch government in September spelled out plans for a big hike in offshore wind capacity, targeting 4.45GW by 2023.

The deal is the latest to confirm Dong’s growing role in the European offshore wind market, even as other major utilities draw back from the sector.