Equitix, together with Kyuden International Corporation and Kyushu Electric Power Transmission and Distribution Company, Incorporated (Kyuden Group), has completed a deal to buy Seagreen Phase 1’s offshore transmission assets from Seagreen Wind Energy Limited (SWEL).

The transaction involves significant infrastructure including subsea and onshore export cables, an offshore substation, and an onshore substation. Equitix and Kyuden Group will oversee the transmission system for 24 years under a license from the UK energy regulator, Ofgem.

Backing Scotland’s Biggest Offshore Wind Farm

Seagreen Phase 1 is Scotland’s largest and the world’s deepest fixed-bottom offshore wind farm, positioned approximately 27 kilometers off the coast of Angus. Three 64-kilometer-long subsea export cables will carry energy from the offshore turbines, followed by a 20-kilometer onshore stretch to the Angus substation.

Seagreen generates up to 1,075 MW of renewable energy, providing power for over 1.6 million homes—about two-thirds of Scotland’s households. By replacing fossil fuel-based electricity, Seagreen will cut over 2 million metric tons of carbon dioxide every year.

Expanding a Growing OFTO Portfolio

This acquisition boosts Equitix’s OFTO portfolio to six assets, transmitting about 3.5 GW of electricity and supporting renewable energy growth. Equitix and Kyuden Group secured the role of preferred bidders for the Dogger Bank A OFTO project, which is on track to finalize financing later this year.

Achal Bhuwania, Chief Investment Officer of Equitix, stated that the company’s investment in Seagreen reflected the dedication and effort of their team in fostering long-term partnerships and creating value for investors. He emphasized that Equitix’s expertise and perseverance had helped them expand their OFTO portfolio, contributing significantly to the UK’s journey toward a net-zero carbon future

Also read: KKR and PSP Investments Acquire Stake in AEP Transmission Companies

Economic and Financial Backing

Seagreen Phase 1 ranked among Scotland’s largest infrastructure projects, injecting over £1 billion into the economy and creating around 4,000 jobs, according to independent analysis by PwC.

Equitix and Kyuden Group funded the acquisition of the transmission assets through a mix of equity investment. They also secured loans from several financial institutions, including The Japan Bank for International Cooperation, Sumitomo Mitsui Trust Bank Limited (London Branch), Mizuho Bank, Ltd., and Aviva Life & Pensions UK Limited.

Seagreen Phase 1 was developed by SWEL as part of a joint venture involving SSE Renewables, TotalEnergies, and PTTEP.

European Investment Bank (EIB) and Orano have signed a €400 million loan agreement to fund part of the investment needed for the upscaling of the Georges Besse 2 uranium enrichment facility in Tricastin, located in France’s Drôme and Vaucluse regions. The investment is significant for Europe’s fossil fuel reduction strategy and accelerating the pace towards low-carbon energy.

Raising Europe’s Strategic Autonomy

The new Georges Besse 2 uranium enrichment facility expansion by EIB and Orano will raise the capacity of uranium enrichment by 30%, and 2.5 million Separative Work Units (SWU) will be added. It is in line with Orano’s determination to serve rising demand from its utility clients for secure and stable supply. The project aims to enhance Europe’s total enrichment capacities, adding another layer to the continent’s energy security. First production will start in 2028, with commissioning completed by 2030.

Implementing Proven Technology for Renewable Energy

The project will entail four new modules alongside the current fourteen, all built using the same proven and well-established technology. This will ensure competitiveness, energy efficiency, as well as environmental safety, with minimal environmental footprint. By supporting this project, the EIB’s loan will contribute to an overall investment of nearly €1.7 billion, using European technologies and relying primarily on French companies for construction and operations.

Also read: EIB Grants €200 Million Loan to Latvenergo for Electricity Network Modernization

EIB’s Support for Energy Transition

The funding supports the EU’s REPowerEU strategy, which promotes speeding up the energy transition and also increasing Europe’s energy self-sufficiency. In 2024, the EIB lent a record €31 billion to European energy security, backing over €100 billion of investment in renewable energy, energy efficiency, and storage schemes.

On 9 October 2024, the European Commission approved the project’s conformity with the Euratom Treaty, enhancing the energy security of Europe.