Sumitomo Corporation to invest in Galloper Offshore Wind Farm
Sumitomo Corporation has signed a contract to invest alongside Macquarie Capital in Galloper Offshore Wind Farm. Sumitomo will indirectly take a 12.5% stake in the project with the transaction due to complete in the coming months.
The project site is located in the North Sea, 27 km off the coast of Suffolk, United Kingdom. The wind farm has a water depth of 27-36 m and has been under construction since financial close. It comprises of 56 SWT-6.0-154 turbines wind turbines manufactured by the Siemens Group supported by monopile foundations.
The total production capacity of the project is up to 336 MW with the electricity generated to be sold through long-tem purchase power agreements with off-takers across the UK. Commercial production is scheduled to commence in 2018 and is expected to provide clean energy for 25 years.
The total cost of the Galloper project is approximately £1.5 billion (US$1.99 billion). The equity sponsors of Galloper, RWE Innogy UK, Siemens Financial Services, UK Green Investment Bank plc and Macquarie Capital, achieved financial close in October 2015.
Aconsortium of 12 commercial banks and the European Investment Bank provides the £1.37 billion (US$2.11 billion) debt facilities. BNP Paribas acted as financial advisor to the project. The 12 commercial banks include: ABN AMRO Bank; BNP Paribas; Crédit Agricole Corporate and Investment Bank; ING Bank ; Landesbank Hessen-Thüringen Girozentrale; Lloyds Bank plc; Natixis, London Branch; Santander Global Banking & Markets; Skandinaviska Enskilda Banken; Societe Generale; Sumitomo Mitsui Banking Corporation; The Bank of Tokyo-Mitsubishi UFJ.
Sumitomo has globally (in Japan, United States, South Africa, etc.) developed its wind power business, which includes investments in three off-shore wind farms, Belwind (165 MW), Northwind (216 MW) and Nobelwind (165MW), all in Belgium in September 2014.
As one of the key business areas, Sumitomo is actively seeking offshore wind business opportunities in the UK, which has the biggest offshore wind market in the world. By leveraging on this experience, know-how and partnership with Macquarie Capital, as well as relationships with other stakeholders, Sumitomo aims to continue development of off-shore wind farms in Europe and contribute to global sustainability.
