Published on December 16th, 2015 | by Joshua S Hill0
DONG Energy Signs New Credit Facilities, Appoints Balfour Beatty Hornsea Substation Contractor
December 16th, 2015 by Joshua S Hill
Danish wind energy giant DONG Energy has signed new credit facilities worth €1.4 billion and €350 million, taking advantage of current market favorability.
At the same time, DONG Energy also awarded London-based construction firm Balfour Beatty the contract to build a new high voltage onshore substation for the new Hornsea Project One offshore wind farm, being developed off the Yorkshire coast, in the UK.
Hornsea Project One
DONG Energy acquired the 1.2 GW Hornsea Project One offshore wind farm in February of 2015 from the SMart Wind consortium — a project covering approximately 407 square kilometers and which is expected to enter commercial operation around 2020, and provide enough electricity to meet the needs of 800,000 UK households.
Announced on Tuesday, DONG Energy awarded the £25 million construction project of the onshore high voltage substation to Balfour Beatty, with work expected to begin in January, 2016. The project, which is set to be built at North Killingholme, North Lincolnshire, includes core buildings and compounds, the installation of low voltage electricity equipment, low voltage cables, communication cables, roads, paths, draining, and landscaping. The project is expected to take approximately two and a half years.
“Following Balfour Beatty’s successful completion of Westermost Rough and the current Burbo Bank project, the Hornsea Project One contract award is testament to the longstanding, successful relationships our project teams have established over the last 3 years,” said Mark Farrah, Balfour Beatty Regional Managing Director for the North and Midlands. “We’re proud to work with DONG Energy in the construction of the onshore substation ensuring that our drive for safety, quality and innovation is at the forefront of our work.”
“We are very pleased to award this important contract to Balfour Beatty, which plays a crucial part in the on-going development of Hornsea Project One as well as providing another example of the benefits to the UK supply chain in our investment in offshore wind,” said Duncan Clark, Programme Director for Hornsea Project One at DONG Energy. “This hugely significant offshore wind farm is a continued commitment to our investment in the UK, working with companies equally committed to achieving the highest standards of safety.”
At the same time, DONG Energy revealed that it had signed €1.4 billion 5-year and €350 million 3-year syndicated revolving credit facilities to replace an existing €1.3 billion facility which was signed in August, 2011. These new credit facilities will allow DONG Energy to take advantage of the current favorable market conditions for credit facilities in the European market, and will serve the company’s general corporate purposes.