Centrica and DONG Energy have formed a joint venture to co-develop offshore wind farms in the Round 3 Irish Sea Zone, which has a potential capacity of 4.2 GW.
As a result of the transaction, DONG Energy will pay Centrica up to 40 million British pounds in cash for a 50% interest in the joint venture. DONG Energy will pay Centrica 15 million British pounds at the closing of the transaction, with the balance payable in later years contingent upon consent being achieved for a project in the Irish Sea Zone and DONG Energy's reaching a final investment decision for a project in the zone.
The two companies will work together to develop different projects in the zone on a 50/50 basis, with construction management of the projects alternating between the parties. For the first project under Centrica's management, a final investment decision is expected in 2016.
Centrica and DONG Energy already hold joint interests in the Barrow and Lincs offshore wind farms.
