2 November 2011
Watson, Farley & Williams, a leading international law firm, is pleased to announce that it has advised DONG Energy, one of Northern Europe’s leading energy companies, on an agreement entered into alongside Japan’s Marubeni Corporation, whereby Marubeni has acquired a 49.9% stake in DONG Energy’s 172MW Gunfleet Sands offshore wind farm off the coast of Essex. Marubeni will pay to DONG Energy a cash consideration of approximately GBP200m for the 49.9% stake in Gunfleet Sands.
DONG Energy and Marubeni have also agreed a long-term purchase agreement for the power production and green certificates arising from Marubeni’s share of Gunfleet Sands’ wind farm. The transmission assets have been sold as part of the general tender process initiated by the UK regulator, Ofgem, in a deal also advised upon by WFW.
The Gunfleet Sands wind farm is located approximately seven kilometres off the Clacton-on-Sea coast, and has a total capacity of approximately 172MW, equal to the energy consumption of 125,000 British households. Its completion marks the UK’s installation of over 1GW of offshore wind power, which contributes considerably to the target of reducing CO2 emissions.
Evan Stergoulis, lead partner and head of Energy commented: “This transaction was one of the more complex transactions we have done in the renewables space, and it is a further recognition of WFW’s position as a leader in the renewable area, particularly in the high-end, more complex transactions.”
The team was led by Evan Stergoulis, partner and head of Energy. He was joined by Charles July, Emma Teague, David McElroy, Joe Hesketh, Ian Fairclough, James Dow, Martin Lucas, Mark Evans and Victoria Barkas, from Projects, Commodities and Export Finance; and Jan Mellman, Christina Howard, Gareth Burge, Daniel Joll and Julia Tarvin from our Corporate team. The banks were advised by Linklaters and Allen & Overy.