Energy giant announces deal for majority stake in huge wind farm

Total also announced yesterday it had taken a majority stake in a giant Scottish offshore wind farm project in a deal worth up to £130 million.

The French energy giant said it had paid SSE Renewables £70m up front for the 51% shareholding in the Seagreen 1 development, with further sums worth up to £60m linked to future performance.

Seagreen 1 is a £2.9 billion, 114-turbine, 1,140 megawatt scheme planned for 17 miles off Angus and poised to become Scotland’s largest offshore wind farm.

Designed to cover the energy needs of around one million homes, it is expected to start producing renewable electricity from the end of 2022.

Total, which has long been rumoured to be negotiating a deal, said it had secured nearly 70% of external financing for its stake.

Patrick Pouyanne, chairman and chief executive, Total, said: “Total builds up a strong position in the world’s largest offshore wind market as it becomes a majority stakeholder in the Seagreen 1 project.

“This move represents a major change of scale for Total’s offshore wind activity in line with our strategy of profitable growth in renewables and low carbon electricity.”

SSE Renewables – part of Perth-based energy group SSE – retains a 49% stake.

SSE chief executive Alistair Phillip-Davies said: “Today’s announcement is the result of great efforts by both teams to complete this transaction in the challenging circumstances.”

Meanwhile, energy services firm Subsea 7 announced it had won a contract worth at least £586.5m for the Seagreen 1 project. It said the deal to provide foundation and cable engineering and construction services would immediately secure 30 jobs at its Seaway 7 subsidiary in Westhill, near Aberdeen, with this number expected to reach around 50 at the peak of activity.