21 JULY 2008

E.ON, one of the UK’s leading renewable generators, has today (MONDAY) joined with Danish utility DONG Energy to buy out Shell’s stake in the London Array offshore wind farm for an undisclosed sum.

The two companies will now become 50:50 partners in the project, which, when built, could generate enough power to supply a quarter of Greater London homes.
 
Dr Paul Golby, Chief Executive of E.ON UK, said: “We’re pleased that, together with DONG Energy, we’ve been able to secure the future of the project, and we’d also like to thank Shell for their contribution to the project’s significant progress to date.

“That also means that we hope to be able to keep the project on track and we should be able to complete the first phase by the end of 2012, subject to securing a number of important contracts, such as those for the wind turbines.

“We believe that offshore schemes such as this have an important part to play as we look to ensure security of supply for the UK, reduce carbon emissions and keep energy as affordable as possible for our customers.”
Mike Lewis, Managing Director Europe of E.ON Climate & Renewables, said: “This deal underlines our commitment to offshore wind, not only in the UK but across the world.

“However, while the economics of this project remain challenging, we believe this flagship project will give us invaluable experience as we go forward with the next generation of offshore projects.

“That means that we can take the lessons we learn from London Array for future projects that are further offshore and, potentially, even larger.”

Shell has committed to leave its staff in the project until the end of the year to enable a smooth transition and handover.

Under the E.ON Climate & Renewables banner, the company already operates a 60MW offshore wind farm in UK waters – Scroby Sands off Great Yarmouth – and is currently building a 180MW scheme – Robin Rigg in the Solway Firth. It also applied for planning permission to build the 300MW Humber Gateway offshore wind farm.

E.ON has a renewable development portfolio in the UK that could produce enough renewable power for around a million homes and displace the emission of almost two million tonnes of carbon dioxide a year. Worldwide, the Group plans to invest €6bn in renewable energy projects by 2010.

In addition, E.ON UK is committed to cutting the amount of carbon it produces for every unit of electricity it generates by 10% by 2012, having already reduced it by 20% since 1990. The Group is aiming to cut the same figure by 50% by 2030.