The Hornsea One wind farm project off the Yorkshire coast
(Picture: Hornsea One project)Investors have snapped up a stake in the world’s biggest offshore wind farm near Yorkshire amid a race by the West to shift away from reliance on Russian oil and gas.
FTSE 250-listed investment trust The Renewables Infrastructure Group (TRIG) has bought 7.8% of the 407sq km Hornsea One field, 120km off the Yorkshire coast. The project, which started operating in 2020, generates enough clean power to 1 million homes. The stake is understood to be worth around £240 million.
Helen Mahy CBE, Chairman of TRIG, said: “We are only too conscious that these are extremely difficult times, and our hearts go out to those so tragically affected by the fighting within Europe.
“We believe that, against this uncertain geopolitical backdrop, it remains important to continue to finance renewables projects and play our part not only in the decarbonisation of the energy sector, but also contributing to security of power supply for the UK and the EU.”
The US, UK and EU have all pledged to give up on Russian oil and gas in response to the country’s invasion of Ukraine. That has sparked a renewed focus on energy supply and security among both Governments and investors.
The International Energy Agency (IEA) this week said the global energy market was “at a crossroads” as it faced “what could turn into the biggest supply crisis in decades”. The IEA estimates that world will see 3 million barrels of oil per day disappear from April as sanctions on Russia kick in. Brent crude climbed back above $100 a barrel today on the warning.
TRIG, set up in 2013, owns 80 wind, solar and battery storage projects in the UK and Northern Europe and is one of the largest renewable energy-focused investment trusts in Europe. It said today it was “currently in exclusive negotiations to invest in an attractive Iberian solar project” as it continues to expand its clean energy portfolio.
TRIG today launched a cash call to help fund its green deals, via an accelerated book build with shares offered at 130p. The stock dipped 3.4p, or 2.4%, to 133.8p.
