Total S A : to Buy 51% Stake in Offshore Wind Project in Scotland

By Jessica Sier

Total SA said Wednesday that it will buy a 51% stake in SSE Renewables offshore wind-farm project for a total of 130 million pounds ($162.9 million).

The French multinational said it will pay GBP70 million up front at the closing of the deal, and then earn-outs of GBP60 million subject to performance. It added that it has secured close to 70% of external financing for its 51% stake.

The 1,140 megawatts wind-farm project, known as Seagreen1, aims to cover the energy needs of 1 million homes. Once completed, it will be Scotland's largest offshore wind-farm project, attracting global investment worth around $3.7 billion, Total said.

"Total builds up a strong position in the world's largest offshore wind market, as it becomes a majority stakeholder in the Seagreen 1 project, one of the largest offshore wind farms in the U.K. North Sea," Total Chairman and Chief Executive Patrick Pouyanne said.

Total's investment will unlock GBP3 billion of low carbon investment and aid the U.K.'s green recovery from coronavirus, SSE Renewables Chief Executive Alistair Phillips-Davies.

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