DONG Energy and Siemens Project Ventures (SPV), a division of Siemens Financial Services, have signed a joint venture contract to acquire a 50% stake in the offshore wind farm project Lincs against payment of 50% of the incurred development costs, currently estimated at 55 million euros.
The parties will acquire the 50% stake in the Lincs project, currently owned by U.K. energy company Centrica, through an equally owned company. Completion of the transaction is expected in January 2010.
DONG Energy's and SPV's aggregated 50% share of the project represents a capital investment of approximately 417 million euros. The estimated investment level is net of anticipated proceeds from the disposal of assets under the offshore transmission regime.
The Lincs project, which has a permitted capacity of up to 270 MW, is located eight kilometers off the coast of Skegness, Lincolnshire, in eastern England. The project is currently in the final design and procurement phase. Construction of the project is expected to commence in summer 2010, with commissioning scheduled for 2012. Centrica will continue to own 50% of the company and will be the leading partner of the project.