EON SE teamed up with the U.K. Green Investment Bank to invest 1.9 billion euros ($2 billion) in a wind farm off Britain, the world’s largest marine wind market.
The partners will finance construction of the Rampion wind farm off Brighton in southern England, they said Monday in separate statements. The 400-megawatt development will generate enough electricity to power 300,000 homes.
Offshore wind in the U.K. is set to gain from a government pledge to cut subsidies to new projects on land amid concerns they’re a blight on the landscape. Dusseldorf, Germany-based EON, which already operates more than 20 British wind farms, is focusing on renewable energy as it spins off fossil-fuel plants into a separate company.
The Green Investment Bank acquired a 327 million-euro stake in the Rampion project, due to start operating in September 2018, it said. EON will own the remaining shares.
“This investment by EON and our partners at the U.K. Green Investment Bank could be one of the biggest capital projects confirmed in Britain this year,” Tony Cocker, chief executive officer of the utility’s U.K. unit, said in the statement.
The bank in April raised 463 million pounds for its planned 1 billion-pound offshore-wind fund. It’s continuing to raise funds to support about five to eight projects.